# H & L EQUITIES, LLC X-17A-5 (2022-03-22) — Broker-dealer annual report
- Company: H & L EQUITIES, LLC
- Form: X-17A-5
- Filed: 2022-03-22
- Period: 2021-12-31
- Accession: 0001143598-22-000001
- CIK: 1143598
- File #: 8-53371
- Type: Broker-dealer
- Material weakness: No
- Auditor: Rubio CPA, PC
- Auditor location: Atlanta, GA
- Contact: Charlie B. Mathes
- Phone: 404-892-3300
- Email: cmathes@reit-funding.com
- Website: reit-funding.com
- Signed by: Charles B. Harrison (President / Owner)
Original filing: https://www.sec.gov/Archives/edgar/data/1143598/000114359822000001/hlfin2021.pdf
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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
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SEC FILE NUMBER
# **ANNUAL REPORTS FORM X-17A-5 PART Ill**
**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 _1-'-/--'-1/_202_ | | | _1 _____ AND ENDING __ 12/_3_1/_20__21 ____ _ | |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|----|-----------------------------------------------|--|
| | MM/DD/YY | | MM/DD/YY | |
| A. REGISTRANT IDENTIFICATION | | | | |
| NAME OF FIRM: __ H_&_L_
E_q;_u
it
ie_
s-'---, _
LL_
_
_ | C _____________________ _ | | | |
| lYPE OF REGISTRANT (check all applicable boxes):
IXI Broker-dealer
D Security-based swap dealer
D Check here if respondent is also an OTC derivatives dealer | | | D Major security-based swap participant | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | |
| 117
5 Peachtree Street, N.E., Suite 2200 | | | | |
| | (No. and Street) | | | |
| Atlanta | | | 30361 | |
| (City) | GA
{State) | | (Zip Code) | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | |
| Charlie B. Mathes | (404) 892-3300 | | cmathes@reit-funding.com | |
| (Name) | (Area Code -Telephone Number) | | (Email Address) | |
| | B. ACCOUNTANT IDENTIFICATION | | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Rubio CPA, PC | | | | |
| | (Name -if individual, state last, first, and middle name) | | | |
| 2727 Paces Ferry Road SE, Ste 2-1680 | Atlanta | GA | 30339 | |
| (Address) | (City) | | (State)
(Zip Code) | |
| /5
/5
2009 | | | 3 514 | |
| (Date of Registration with PCAOB!(ifapi;ilh;able) | FOR OFFICIAL USE ONLY | | (PCAOB Regrstratlon Nurn�er, if applicable) | |
• Claims for exemption from Lhe requirement that the annual reports be covered by the 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-S(e)(l)(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 0MB control number.
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#### **OATH OR AFFIRMATION**
| Charles B. Harrison
I, | swear (or affirm) that, to the best of my knowledge and belief, the | |
|--------------------------------------------|---------------------------------------------------------------------------------------------|-------|
| financial report pertaining to the flrm of | H & L Equities, LLC | as of |
| December 31 | , 2QZ.L_, is true and correct. I further swear (or affirm) that neither the company nor any | |
**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.**
**This filing\*\* contains (check all applicable boxe'iy:::,**
- □ **(a) Statement of financial condition.**
- **0 (b) Notes to consolidated statement of financial condition.**
- **[]I (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).**
- **[xJ (d) Statement of cash flows.**
- ra **(e) Statement of changes in stockholders' or partners' or sole proprietor's equity.**
- **0 (f) Statement of changes in liabilities subordinated to claims of creditors.**
- **[XI (g) Notes to consolidated financial statements.**
- **09 (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-l, as applicable.**
- **0 (i) Computation of tangible net worth under 17 CFR 240.18a-2.**
- **0 (j) Computation far 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.**
- **D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3.**
- **0 (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3.**
- **0 (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.18a-4, as applicable.**
- **Ix] (o} Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-l, 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.**
- **D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.**
- **G(J (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.**
- **0 (r) Compliance report in accordance with 17 CFR 240.l 7a-5 or 17 CFR 240.18a-7, as applicable.**
- **00 (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.**
- **D (t) Independent public accountant's report based on an examination of the statement of financial condition.**
- **� (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.**
- **0 (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.**
- **� (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12, as applicable.**
- **0 (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).**
**D (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_**
*\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e}(3) or 17 CFR 240.18a-7(d}(2), as applicable.*
**Title: .·· ::\_\_ ..,. "---- President/ Owner**
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## **H&L EQUITIES, LLC**
## **FINANCIAL STATEMENTS AND SCHEDULES**
**For the Year Ended December 31, 2021 With Report of Independent Registered Public Accounting Firm**
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R.UBIO CPA, PC
CERTIFIED PUBLIC ACCOUNTANTS 2727 Paces Ferry Road SE
Building 2, Suite 1680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 770 838-7123
# **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Members of H & L Equities, LLC
Opinion on the Financial Statements
We have audited the accompanying statement of financial condition of H & L Equities, LLC (the "Company") as of December 31, 2021, the related statements of operations, changes in members' equity, and cash flows for the year then ended and the related notes ( collectively referred to as the "financial statements"). ln our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021, and the results of its operations and its cash flows for the year 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 the Company's management. Our responsibility is to express an opinion on the Company'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 the Company 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement to 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.
### Supplemental Information
The information contained in Schedules I and II has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the information in Schedules I and II reconciles to the financial statements or the underlying accounting and other records, as applicable, and perfonning procedures to test the completeness and accuracy of the information presented in the accompanying schedules. In fanning our opinion on the accompanying schedules, we evaluated whether the supplemental information, including its form and content, is presented
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in conformity with 17 C.F.R. §240.1 ?a-5. In our opinion, the aforementioned supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
We have served as the Company's auditor since 2013.
March 17, 2022 Atlanta, Georgia
**-{W;,u>tt,()c.,** Rubio CPA PC
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## **H&L Equities, LLC STATEMENT OF FINANCIAL CONDITION December 31, 2021**
## **ASSETS**
| Cash | \$
344,013 |
|-------------------------------------------|---------------|
| Commissions Receivable -
Related Party | 18,750 |
| Due from Related Party | 41,991 |
| Prepaid Expenses | 1,455 |
| Total Assets | \$
406,209 |
## **LIABILITIES AND MEMBERS' EQUITY**
| Total Liabilities and Members' Equity | 406,209
\$ |
|---------------------------------------|---------------|
| Members' Equity | 391,459 |
| Total Liabilities | 14,750 |
| Accounts Payable and Accrued Expenses | 3,500 |
| Commissions Payable | 11,250 |
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## **H&L Equities, LLC STATEMENT OF OPERATIONS For the Year Ended December 31, 2021**
#### **REVENUE:**
| Commissions | \$ 1,807,625 |
|---------------|--------------|
| Total Revenue | 1,807,625 |
#### **EXPENSES:**
| Commission Expense | 1,084,575 |
|---------------------------|---------------|
| Compensation and Benefits | 282,106 |
| IT, Data, & Communication | 10,911 |
| Occupancy | 16,276 |
| Other | 28,159 |
| Total Expenses | 1,422,027 |
| NET INCOME | 385,598
\$ |
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## **H&L Equities, LLC STATEMENT OF CHANGES IN MEMBERS' EQUITY For the Year Ended December 31, 2021**
| Balance, December 31, 2021 | \$
391,459 |
|----------------------------|---------------|
| Distributions to Members | (300,000) |
| Net Income | 385,598 |
| Balance, December 31, 2020 | \$
305,861 |
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### **H&L Equities, LLC STATEMENT OF CASH FLOWS For the Year Ended December 31, 2021**
#### **CASH FLOWS FROM OPERA TING ACTIVITIES:**
| | Net Income | \$
385,598 |
|------|-------------------------------------------------------|---------------|
| | Adjustments to reconcile net income to net cash | |
| | provided by operating activities: | |
| | Decrease in Prepaid Expenses | 599 |
| | Increase in Commissions Receivable -
Related Party | (6,250) |
| | Increase in Due from Related Party | (41,991) |
| | Decrease in Due to Related Party | (40,978) |
| | Increase in Commissions Payable | 3,750 |
| | Net cash provided by operating activities | 300,728 |
| | CASH FLOWS FROM FINANCING ACTIVITIES: | |
| | Distributions to Members | (300,000) |
| | | |
| | Net cash used by financing activities | (300,000) |
| | | |
| | NET INCREASE IN CASH | 728 |
| | | |
| CASH | Beginning of year | 343,285 |
| | End of year | \$
344,013 |
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## **H&L Equities, LLC NOTES TO FINANCIAL STATEMENTS**
## **NOTE 1: NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
## **Natnre of Business:**
**The Company, formed on May 30, 2001, operates as a broker-dealer in the private placements of Real Estate Investment Trusts (REITs). The Company is registered with the Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority ("FINRA"). As a limited liability company, the members' liability is limited to their investment.**
## **Income Taxes:**
**The Company is treated as a partnership for federal income tax purposes. Consequently, income taxes are not payable by, or provided for, the Company. Members are taxed individually on their shares of the Company's earnings.**
**The Company has adopted the provisions of FASB Accounting Standards Codification 7 40-10, Accounting for Uncertainty in Income Taxes. Under FASB ACS 740-10, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position.** *A* **tax position includes an entity's status, including its status as a pass-through entity, and the decision not to file a return. The Company has evaluated each of its tax positions and has determined that it has no uncertain tax positions for which a provision or liability for income taxes is necessary.**
#### **Revenue Recognition:**
**Revenue from contracts with customers includes private placements of REITs. The recognition and measurement ofrevenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on appropriate measure of the Company's progress under contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events.**
**The Company recognizes revenue upon the closing of an offering with funds remitted to the REIT customer as this satisfies the only performance obligation identified by the Company.**
**The Company maintains its cash in a high credit quality bank. Balances at times may exceed federally insured limits.**
## **Use of Estimates:**
**The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires reliance on accounting information based on estimates which may or may not reflect actual future results.**
#### **Subsequent Events:**
**Subsequent events were evaluated through the date the financial statements were issued.**
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## **NOTE 2: RELATED PARTY TRANSACTIONS**
**The Company has an expense allocation agreement with a company partially owned by one of its members. Under the agreement, the Company pays the related company monthly fees for personnel services, the use of office facilities, including office furniture and equipment, supplies, and other administrative services. The amount expensed by the Company for 2021 under the arrangement is approximately \$3 12,153. The due from related party of \$41,991 arises from an overpayment under this arrangement.**
**In addition, the Company earns all of its revenues from private placements of REITs referred by the company partially owned by one of its members. The commissions receivable from related party arose from these transactions as the related party collects and subsequently remits all amounts earned by the Company from the referred entities.**
**Financial positions and results of operations would differ from the amounts in the accompanying financial statements if these related party transactions did not exist.**
## **NOTE 3: NET CAPITAL REQUIREMENTS**
**The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-l), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2021, the Company had net capital of \$340,5 13, which was \$335,513 in excess of its required net capital of \$5,000 and the ratio of aggregate indebtedness to net capital was 0.04 to 1.0.**
#### **NOTE 4: CONTINGENCIES**
**The Company is subject to litigation in the normal course of business. The Company has no litigation in progress as of December 31, 2021.**
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#### **H&L Equities, LLC**
### **Supplementary Information Pursuant to Rule 17 a-5 of the Securities Exchange Act of 1934**
#### **December 31, 2021**
**The accompanying schedule is prepared in accordance with the requirements and general format of FOCUS Form X-17 A-5.**
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## **H&L Equities, LLC SCHEDULE I COMPUTATION OF NET CAPITAL UNDER RULE 1Sc3-1 OF THE SECURITIES AND EXCHANGE COMIMISSION ACT OF 1934**
**December 31, 2021**
#### **Net Capital**
| Total members' equity qualified for net capital | \$
391,459 |
|-------------------------------------------------|---------------|
| Deduction for non-allowable assets: | |
| Commissions receivable, net | (7,500) |
| Due from Related Party | (41,991) |
| Prepaid expenses | (1,455) |
| Net capital before haircuts | 340,513 |
| Less haircuts | |
| Net capital | 340,513 |
| Minimum net capital required | 5,000 |
| Excess net capital | \$
335,513 |
| Aggregate Indebtedness:
Liabilities | 14,750 |
| Ratio of aggregate indebtedness to net capital | .04 to 1 |
### **RECONCILATION WITH COMPANY'S COMPUTATION OF NET CAPITAL INCLUDED IN PART IIA OF FORM X-17A-5 AS OF DECEMBER 3 1, 2021.**
**There is no difference between net capital as reported in the FOCUS Part IIA filed January 26, 2022 and net capital as reported above.**
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### **H&L Equities, LLC**
## **SCHEDULE II COMPUTATION FOR DETERMINATION OF THE RESERVE REQUIREMENTS UNDER THE SECURITIES AND EXCHANGE COMMISSION RULE 15c3-3 AND INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER SECURITIES AND EXCHANGE COMMISSION RULE 15c3-3 DECEMBER 31, 2021**
**The Company does not claim exemption from Rule 15c3-3 in reliance upon Footnote 74 of the 2013 Release. The Company does not hold customer funds or securities.**
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**H & L EQUITIES, LLC** 1175 Peachtree Street NE, Suite 2200 Atlanta, GA 30361 Phone: 404-892-3300; Fax: 404-892-7559
## BROKER DEALER ANNUAL EXEMPTION REPORT
We, as members of management of H & L Equities, LLC (the "Company"), are responsible for complying with Rule 1 7a-5 - Reports to be made by ce11ain brokers and dealers. We have performed an evaluation of the Company's compliance with the requirements of Rule l 7a-5 and the exemptive provisions of Rule 15c3-3(k) (the "exemptive provisions"), and of the 20 13 Release adopting amendments to Rule l 7a-5, including Footnote 74 of the 20 13 Release ("Footnote 74").
We have determined that the Company does not operate pursuant to any of the exemptive provisions of paragraph (k) of Rule 15c3-3, but also (1) does not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (b)(2) of Rule 1 5c2-4; (2) does not carry accounts of or for customers; and (3) does not ca1Ty PAB accounts (as defined in Rule 1 5c3-3 ).
Accordingly, based on our evaluation we make the following statements to the best knowledge and belief of the Company:
- l. The Company has no possession or control obligations under Rule 1 5c3-3(b) or reserve deposit obligations under Rule 15c3-3(e), because its business is limited to effecting securities transactions via subscriptions and participating in distributions of securities in accordance with the requirements of paragraph (b)(2) of Rule 15c2-4;
- 2. We reviewed the provisions of Rule l 5c3 -3 and related guidance and confirmed that the Company could rely on Footnote 74; and
- 3. The Company met the identified conditions for reliance on Footnote 74 throughout the period of January 1, 2021 to December 3 1, 202 1 without exception.
*/1£* Charles B. Harrison
President *I* Owner
February 28, 2022
*Securities products and services offered by H* **&** *L Equities, LLC, member FINRA and the Securities Investor Protection Corporation ("SIPC''). You* may *obtain information about SIPC, including the S/PC brochure, by contacting Sf PC at (202) 371-8300 or visiting their website at www.sipc.org.*
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RUBIO CPA, PC
CERTIFIED PUBLIC ACCOUNTANTS 2727 Paces Ferry Road SE
Bui lding 2, Suite 1680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 770 838-71 23
## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Members of H & L Equities, LLC
We have reviewed management's statements included in the accompanying Broker Dealers Annual Exemption Report in which (I) H & L Equities, LLC did not claim an exemption from Rule 1 5c3-3 in reliance upon Footnote 74 of the 20 13 Release, and (2) H & L Equities, LLC stated that H & L Equities, LLC met the identified conditions for such reliance throughout the most recent fiscal year without exception. H & L Equities, LLC's management is responsible for compl iance 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, accordfogly, included inquiries and other required procedures to obtain evidence about H & L Equities, 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 Footnote 74 of the 20 13 Release.
March 17, 2022 Atlanta, GA
> � UA,Qc.. Rubio CPA, PC
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| SIPC-7 | |
|------------------|--|
| (36-REV 1 2/1 8) | |
## SECURITIES I N VESTOR PROT E CTION CORPORATION Mail Code: 8967 P.O. Box 7247 Philadelphia, PA 191 70-0001
## General Assessment Re conciliation
**SIPC-7** (36-REV 1 2/18)
For lhe fiscal year ended \_\_ 2\_-0\_?,-,\_I \_
(Read carefully lhe instructions in your Working Copy before completing lllis Form)
#### TO BE FILED BY ALL SIPC M EMBERS WITH FISCAL YEAR ENDINGS
1. Name of Me m ber, address, Designated Examining Authority, 1 934 Act regis lra! ion no. and month in which fiscal year e nds for purposes of the audit requirement of SEC R u le 1 7a-5:
| | 7
I H&L Equities, LLC
1 1
75 Peachtree St NE
Suite 2200
Atlanta, GA 30361
L
_J | Nole: If any of the informatio n shown on the
mailing label requires correction, please e-mail
any corrections to form@sipc.org and so
indicate on the form filed.
Name and telephone number of person to
contact respecting this form.
Lori D Mayfield 404-892-3300 |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | 2. A. General Assessment (item 2e from page 2) | |
| | B. Less payment made with SI PC-6 filed (exclude Interest)
8/9/2021 | ( 2,103 |
| | Date Paid
C. Less prior overpayment applied | |
| | D. Assessment bala nce due or (overp ayment) | 608 |
| | E. Interest computed on l a!e paymen! (see ins!ruction E) for ______ days at 20% per annum | 0 |
| F. | Total assessment balance and inte rest due ( or ove rpayment carried forward) | 608
\$ |
| | q
✓ the box
G. PAYMENT:
l✓I
D
Check mailed to P.O. Box
Funds Wired
ACH
608
Total (must be same as F above)
__________ _
\$( ----------
0
H. Overpayment carried forward
3. Subs idiaries (S) and predecessors {P) included in this form (give name and 1 934 Act reg istration number):
NIA | |
| | The SIPC member submitting this lorm and the
p e rson by whom ii is executed represent t h ereby
H&L Equities, LLC
that all information contained herein is tru e, correct
and complete.
d ay of February
Dated the 25
, 20�. | ganizal!on) |
| | This form and the assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form
for a period of not less than 6 years, the latest 2 years in an easily accesslble place. | (Tille) |
| ;:s: | ffi Dates:
Pos tmarked
Received
Rev iewed | |
| | > Calculatio ns __ _
Documentation __ _ | Forward Copy ___ _ |
| | c, Exceptio ns: | |
| | v., Disposition of exceptions:
1 | |
{17}------------------------------------------------
## **D ETERMINATI ON OF "SIPC NET OPER ATI NG REVENUES" AND GENERAL ASSESSMENT**
Amou nts for the fiscal period beg inning **\_,\_111\_20\_21 \_\_\_\_ \_**
| | and ending _,_21"_12,_2, ___ _ |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
| Item No.
2a. Total revenue (FOCUS Line 1 2/Parl IIA Line 9, Code 4030) | Eliminate cents
\$ 1 , 807,625 |
| 2b. Additions: | |
| (1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and
predecessors not included above. | 0 |
| (2) Net loss from principal transactions in securities in trading accounts. | 0 |
| (3) Net loss from principal transactions in commodities in trading accounts. | 0 |
| (4) Interest and dividend expense deducted in determining item 2a. | 0 |
| (5) Net loss from management ol or participation in the underwriting or distribution of securities. | 0 |
| (6) Expenses other than advertising, printing, registration fees and legal fees deducted in determining net
profit from management of or participation in underwriting or distribution of securities. | 0 |
| (7) Net loss from securit ies in investment accounts. | 0 |
| Total additions | 0 |
| 2c. Deductions:
(1) Revenues from the distribution of shares of a registered open end investment company or unit
investment trust, from the sale of variable annuities, from the business ol insurance, from inv estment
advisory services ren dered to registered in vestment companies or Insurance company separate
accounts, and from transactions in security futures products. | 0 |
| (2) Revenues from commodity transactions. | 0 |
| (3) Commissions, floor brokerage arid clearance paid to other SIPC members in conn ection with
securities transactions. | 0 |
| (4) Reimbursements for postage in connection with proxy solicitation. | 0 |
| (5) Net gain from securities In investment accounts. | 0 |
| (6) 1 00% of commissions and markups earned from transactions in (i) certificates of deposit and
(ii) Treasury bi lls, bankers acceptances or commercial paper that mature nine months or less
from issuance date . | 0 |
| (7) Direct expenses o.f printing advertising and legal fees incur red in connection with other revenue
related to the securities business (revenue delloed by Section 16(9)(L) oi the Act). | 0 |
| (8) Other revenue not related either directly or indirectly to the securities business.
(See I nstruction C): | |
| | 0 |
| ( Deductions in excess of \$ 1 00,000 require documentation) | |
| (9) (i) Total interest and dividend expense ( FOCUS Line 22/PART IIA Line 13,
Code 4075 plus line 2b(4) above) but not In excess
O
of total interest and dividend i ncome.
\$ __________ _ | |
| (ii) 40% of margin interest earned on customers securities
accounts (40% of FOCUS line 5, Code 3960). | |
| Enter the greater of line (i) or (ii) | 0 |
| Total deductions | 0 |
| 2d. SI PC Net Opera ting Revenues | 1 ,807,625
\$ |
| 2e. General Assessment @ .0015 | \$ 2,71 1 |
| | (lo page 1, line 2.A.) |
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**RUBIO CPA, PC** CERTI FIED PUBLIC ACCOUNTANTS 2727 Paces Ferry Road SE
Building 2, Suite 1 680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 770 838-7123
## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES**
To the Members of H & L Equities, LLC
We have perfonned the procedures included in Rule l 7a-5(e)(4) under the Securities Exchange Act of 1 934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below and were agreed to by H & L Equities LLC and the SlPC solely to assist you and SIPC in evaJuating H & L Equities. LLC-s compliance with the applicable instructions of the GeneraJ Assessment Reconciliation (Fonn lPC-7) for the year ended December 31, 2021. H & L Equities, LLC's management is responsible for its Fonn SJPC-7 and for its compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with standards establ ished by the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed, and our findings are as follows:
- 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences;
- 2) Compared the Total Revenue amount reported on the Annual Audited Repo11 Form X-1 7A-5 Part III for the year ended December 3 1 , 202 1 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 202 l, noting no differences;
- 3) Compared any adjustments reported in Fonn SIPC-7 with supporting schedules and working papers, noting no differences;
- 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences.
We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on H & L Equities, LLC's compliance with the applicable instructions of the Fonn SIPC-7 for the year ended December 31, 2021. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
This report is intended solely for the infonnation and use of H & L Equities, LLC and the SIPC and is not intended to be and should not be used by anyone other than these specified parties.
March 1 7, 2022 Atlanta, GA
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