# EIDE BAILLY SECURITIES, LLC X-17A-5 (2021-06-24) — Broker-dealer annual report - Company: EIDE BAILLY SECURITIES, LLC - Form: X-17A-5 - Filed: 2021-06-24 - Period: 2021-04-30 - Accession: 0001137878-21-000002 - CIK: 1137878 - File #: 8-53238 - Material weakness: No - Auditor: Widmer Roel P.C. - Auditor location: Fargo, ND - Contact: Karla Wilson - Phone: 701-239-8593 - Signed by: Karla Wilson (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1137878/000113787821000002/ebsecuritiesllcApril2021.pdf --- {0}------------------------------------------------ # **EIDE BAILLY SECURITIES LLC** *FINANCIAL STATEMENTS APRIL 30, 2021* {1}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response.. . . . . . . 12.00 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III | SEC FILE NUMBER | |-----------------| | 8-53238 | | | FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | MM/DD/YY
A. REGISTRANT IDENTIFICATION
NAME OF BROKER-DEALER: Eide Bailly Securities LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
(No. and Street)
ND
(State)
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | MM/DD/YY
OFFICIAL USE ONLY
FIRM I.D. NO.
58103
(Zip Code)
(Area Code - Telephone Number) | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
(Name - If individual, state last, first, middle name) | | | | 58103-7414 | | (State) | (Zip Code) | | | | | | ND
Accountant not resident in United States or any of its possessions.
FOR OFFICIAL USE ONLY | \*Claims for exemption from the requirement that the annual report 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(c)(2) > Potential 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 | Karla Wilson | swear (or affirm) that, to the best of | |----------------------------|-----------------------------------------------------------------------------------------------------------------| | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | Eide Bailly Securities LLC | ડીટે | | of April 30 | are true and correct. I further swear (or affirm) that
2041 | | | neither the company nor any partner, principal officer or director has any proprietary interest in any account | classified solely as that of a customer, except as follows: LARAE LANGERUD Notary Public State of North Dakota My Commission Expires Oct. 30, 2023 Signature Chief Financial Officer Title Notary Public This report \*\* contains (check all applicable boxes): - (a) Facing Page. - (b) Statement of Financial Condition. - (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) Statement of Changes in Financial Condition. - (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - (g) Computation of Net Capital. - (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. - (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - (j) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of consolidation. - (1) An Oath or Affirmation. - (m) A copy of the SIPC 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 treatment of certain portions of this filing, see section 240.17a-5(e)(3). {3}------------------------------------------------ #### **EIDE BAILLY SECURITIES LLC FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30, 2021** Table of Contents #### **Page** | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
1-2 | |----------------------------------------------------------------------------------------------------------------------------------------|----------| | FINANCIAL STATEMENTS | | | Statement of Financial Condition
3 | | | Statement
of Income
4 | | | Statement
of Change
in Member's Equity5 | | | Statement of Cash Flows
6 | | | Notes to Financial Statements | 7-8 | | SUPPLEMENTARY INFORMATION
Computation of Net Capital Pursuant to Rule 15c3-1
of the Securities and Exchange CommissionI………………….9 | Schedule | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON REVIEW OF EXEMPTION REPORT
| 10 | | ASSERTIONS
REGARDING
EXEMPTION
PROVISIONS
REPORT …………………11 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 4220 31st Avenue S. Fargo, ND 58104-8725 Phone: 701.237.6022 Toll Free: 888.237.6022 Fax: 701.280.1495 ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Governors Eide Bailly Securities LLC Fargo, North Dakota #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Eide Bailly Securities LLC (a South Dakota corporation), as of April 30, 2021 and the related statements of income, changes in member's equity and cash flows for the year 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 Eide Bailly Securities LLC as of April 30, 2021, and the results of its operations and its cash flows for the year then ended April 30, 2021, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of the entity's management. Our responsibility is to express an opinion on these 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 Eide Bailly 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 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. ![](_page_4_Picture_10.jpeg) {5}------------------------------------------------ #### Supplemental Information Schedule I – Computation of Net Capital under Rule 15c3-1 ("Schedule I") has been subjected to audit procedures performed in conjunction with the audit of the Eide Bailly Securities LLC's financial statements. The supplemental information is the responsibility of the entity's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting 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, Schedule I is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Eide Bailly Securities LLC's auditor since 2012. Fargo, North Dakota June 18, 2021 {6}------------------------------------------------ ## **EIDE BAILLY SECURITIES LLC STATEMENT OF FINANCIAL CONDITION APRIL 30, 2021** | | | 2021 | |------------------------------------------------------------------------------------------|---|------------------------| | ASSETS
Cash and cash equivalents
Receivable from broker dealer
Prepaid expenses | S | 75,259
6,675
500 | | Total assets | S | 82,434 | | | | | | LIABILITIES AND MEMBER'S EQUITY | | | | LIABILITIES | | | | Accounts payable | S | 350 | | | | | | MEMBER'S EQUITY | | | | Member's paid-in capital | | 15,000 | | Member's undistributed earnings | | 67,084 | | Total member's equity | S | 82,084 | | Total liabilities and member's equity | S | 82,434 | {7}------------------------------------------------ # **EIDE BAILLY SECURITIES LLC STATEMENT OF INCOME YEAR ENDED APRIL 30, 2021** | | 2021 | |-----------------------------------|--------------| | REVENUES
Commission income | S
443,171 | | | 443,171 | | EXPENSES | | | Licensing and registration | 39.077 | | Technology expense | 14.745 | | Professional fees | 24.691 | | Management and allocated overhead | 105,000 | | Other expenses | 6.910 | | | 190,423 | | NET INCOME | S
252,748 | {8}------------------------------------------------ # **EIDE BAILLY SECURITIES LLC STATEMENT OF CHANGE IN MEMBER'S EQUITY YEAR ENDED APRIL 30, 2021** | | | Member's
Paid-in
Capital | | Member's
Undistributed
Earnings | | Total | | |--------------------------------------------------|----|--------------------------------|---|---------------------------------------|---|----------------------|--| | BALANCE, APRIL 30, 2020 | ಳಿ | 15,000 | S | 48.876 | S | 63.876 | | | Net income
Distribution of earnings to member | | | | 252.748
(234,540) | | 252.748
(234,540) | | | BALANCE, APRIL 30, 2021 | ಳಿ | 15,000 | S | 67,084 | S | 82,084 | | {9}------------------------------------------------ # **EIDE BAILLY SECURITIES LLC STATEMENT OF CASH FLOWS YEAR ENDED APRIL 30, 2021** | | 2021 | | | | |-----------------------------------------------------------------------------------------------------------------------------------------|----------------|--|--|--| | OPERATING ACTIVITIES
Net income
Adjustments to reconcile net income to net cash
and cash equivalents from operating activities | 252,748 | | | | | Change in receivable from broker dealer
Change in prepaid miscellaneous | 1,871
(276) | | | | | Change in accounts payable | 34 | | | | | NET CASH FROM OPERATING ACTIVITIES | 254,377
n | | | | | FINANCING ACTIVITY
Distribution of earnings to member | \$ (234,540) | | | | | NET CHANGE IN CASH AND
CASH EQUIVALENTS | 19,837 | | | | | CASH AND CASH EQUIVALENTS, BEGINNING | 55,422 | | | | | CASH AND CASH EQUIVALENTS, ENDING | S
75,259 | | | | {10}------------------------------------------------ # **EIDE BAILLY SECURITIES LLC NOTES TO FINANCIAL STATEMENTS APRIL 30, 2021** ### **NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS** Eide Bailly Securities LLC (EBS) is registered as a broker-dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority (FINRA). EBS is a registered broker-dealer in the state of South Dakota and is a wholly-owned subsidiary of Eide Bailly Financial Services, LLC (EBFS). The majority of EBS commission revenue is earned from a broker-dealer, which executes securities transactions including the sale of oil and gas interests, mutual fund investments and transfers on behalf of customers and also includes regulated life insurance products, such as variable annuity contracts and variable life insurance policies. ### **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### *Cash and Cash Equivalents* EBS includes demand deposits in the category of cash and cash equivalents as presented in the cash flow statement. #### *Commissions Receivable* Receivable from affiliated broker represents accruals for commission amounts due from one broker-dealer. It is the EBS' policy to use the reserve method to write off uncollectible accounts. Amounts not paid within 30 days are considered past due. There were no amounts over 90 days past due as of April 30, 2021. Management anticipates no substantial losses from present receivable balances. Therefore, there is no balance in the reserve at April 30, 2021. #### *Use of Estimates* The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. #### *Income Taxes* EBS along with its Parent, EBFS are included in the consolidated federal and state income tax returns as disregarded entities which is filed by Eide Bailly LLP the parent company of EBFS. As a limited liability partnership, all the Company's taxable income or loss is allocated to the partners in accordance with their respective percentage ownership. Therefore, no provision for income taxes has been included in the financial statements. #### **NOTE 3 - NET CAPITAL REQUIREMENTS** EBS, as a registered broker and dealer in securities, is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1). Under the computation provided by the Uniform Net Capital Rule, EBS is required to maintain net capital equal to the greater of \$5,000 or 6 2/3% of aggregate indebtedness. At April 30, 2021, EBS had net capital, as computed under the rule, of \$81,584 and its ratio of aggregate indebtedness to net capital was 0.0043 to 1. #### **NOTE 4 - RELATED PARTIES** (continued on next page) 7 EBS has a single member owner, EBFS which is the parent company for various financial service entities. All indirect operating expenses of EBFS' related entities are paid for by EBFS including all compensation and related employee costs of financial services representatives. Direct expenses incurred and paid by EBS, in addition to certain expenses incurred by EBFS through the Expense Allocation Agreement, are recognized in the financial statements of EBS. The Expense Allocation Agreement between EBS and EBFS is approved annually by management. During FY2021, EBS reimbursed EBFS for \$105,000. As of April 30, 2021, EBS owes \$0 to EBFS {11}------------------------------------------------ # **EIDE BAILLY SECURITIES LLC NOTES TO FINANCIAL STATEMENTS APRIL 30, 2021** for these expenses. #### **NOTE 5 - SUBSEQUENT EVENTS** Subsequent events have been evaluated through June 24, 2021 the date the financial statements were available to be issued. #### **NOTE 6 - CONCENTRATIONS OF CREDIT RISK** 100% of EBS's earned revenues for FY2021 were generated from commissions associated with transactions from United Planners. At April 30, 2021, EBS had a receivable of \$6,675 from United Planners. #### **NOTE 7 – REVENUE FROM CONTRACTS WITH CUSTOMERS** Revenue received is commissions from representatives at United Planners. EBS recognizes all revenue at a point in time. #### **NOTE 8 – CONTINGENCIES, COMMITEMENTS AND GUARANTEES** EBS did not have any contingencies, commitments or guarantees through June 24, 2021 the date the financial statements were available to be issued. {12}------------------------------------------------ # **EIDE BAILLY SECURITIES LLC** *SUPPLEMENTARY INFORMATION* {13}------------------------------------------------ ## **EIDE BAILLY SECURITIES LLC Schedule I COMPUTATION OF NET CAPITAL PURSUANT TO RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION APRIL 30, 2021** | MEMBER'S EQUITY | S | 82.084 | |----------------------------------------------------------------------------------------------------------------------------|---|-------------| | DEDUCTIONS:
Nonallowable assets:
Prepaid expenses | S | 500 | | NET CAPITAL | S | 81,584 | | MINIMUM NET CAPITAL REQUIREMENT PER RULE 15C3-1 (a)(2)(vi)
(The greater of \$5,000 or 6 2/3% of aggregate indebtedness) | S | 5.000 | | AGGREGATE INDEBTEDNESS | S | 350 | | RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL | | 0.0043 to 1 | {14}------------------------------------------------ ![](_page_14_Picture_0.jpeg) 4220 31st Avenue S. Fargo, ND 58104-8725 Phone: 701.237.6022 Toll Free: 888.237.6022 Fax: 701.280.1495 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Governors Eide Bailly Securities LLC Fargo, North Dakota We have reviewed management's statements, included in the accompanying Assertions Regarding Exemption Provisions Report, in which (1) Eide Bailly Securities LLC identified the following provisions of 17 C.F.R. §15c3-3(k) under which Eide Bailly Securities LLC claimed an exemption from 17 C.F.R. §240.15c3-3: section (k)(2)(i) (the "exemption provisions") and (2) Eide Bailly Securities LLC stated that Eide Bailly Securities LLC met the identified exemption provisions throughout the most recent year without exception. Eide Bailly Securities LLC's management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Eide Bailly Securities LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(i) of Rule 15c3-3 under the Securities Exchange Act of 1934. Fargo, North Dakota June 18, 2021 ![](_page_14_Picture_10.jpeg) 10 {15}------------------------------------------------ ![](_page_15_Picture_1.jpeg) FINANCIAL SERVICES # Assertions Regarding Exemption Provisions We, as members of management of Eide Bailly Securities, LLC, are responsible for compliance with the annual reporting requirements under Rule 17a-5 of the Securities Exchange Act of 1934. Those requirements compel a broker or dealer to file annuals reports with the Securities Exchange Commission (SEC) and the broker or dealer's designated examining authority (DEA). One of the reports to be included in the annual filing is an exemption report prepared by management and reviewed by an independent public accountant based upon a review of assertions provided by the broker or dealer. Pursuant to that requirement, the management of the Company hereby makes the following assertions: #### Identified Exemption Provision: The Company claims exemption from the custody and reserve provisions of Rule 15c3-3 by operating under the exemption provided by Rule 15c3-3, Paragraph (k)(2)(i). #### Statement Regarding Meeting Exemption Provision: The Company met the identified exemption without exception throughout the period May 1, 2020 through April 30, 2021. Eide Bailly Securities LLC By: arla Wilson Karla Wilson, Principal Financial Officer May 10, 2021 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.