# ERG SECURITIES (US) LLC X-17A-5/A (2025-04-02) — Broker-dealer annual report - Company: ERG SECURITIES (US) LLC - Form: X-17A-5/A - Filed: 2025-04-02 - Period: 2024-12-31 - Accession: 0001174316-25-000002 - CIK: 1174316 - File #: 8-65376 - Type: Broker-dealer - Material weakness: No - Auditor: David Lundgren & Company - Auditor location: Olathe, KS - Contact: Kimberly Ryan - Phone: 248-224-8713 - Email: kryan@compliance-risk.com - Website: compliance-risk.com - Signed by: Robert Goodman (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1174316/000117431625000002/ergauditshort2.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL REPORTS FORM X-17A-5 PART Ill** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 > SEC FILE NUMBER 8-65376 | | | FACING PAGE | | | |---------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|----------------------------------------------| | FILING FOR THE PERlfl D BEGINNING 0110112o24 | | Information Requir d Pursuant to Rules 17a-5, 17a-12, and lSa-7 under the Securities Exchange Act of 1934
AND ENDING 12/31/2024 | | | | | | MM/DD/YY | | MM/DD/VY | | I | | A. REGISTRANT IDENTIFICATION | | | | I
NAME oF FIRM: E~G Securities (US) LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
C!l Broker-dealer | l
D Security-based swap dealer
D Check here if resp[ ndent is also an OTC derivatives dealer | | D Major security-based swap participant | | | ADDRESS OF PRINCl~AL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 50 Washingtpn St., Suite 921 | | | | | | | | (No. and Street} | | | | Norwalk | | CT | | 06854 | | | (City) | (State) | | (Zip Code) | | PERSON TO CONT AC WITH REGARD TO THIS FILING | | | | | | Kimberly Ryan
I | | 248-224-8713 | | kryan@compliance-risk.com | | (Name} | | (Area Code - Telephone Number) | (Email Address} | | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | David Lundglren & Company | | | | | | | | | | | | | | | | 66062 | | (Address) | | (City) | (State} | (Zip Code} | | 01/05/2015 | | | 6075 | | | | | | | (PCAOB Regi,t,atio" Nombec, if applicable) I | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | * Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | | | accountant must be sup ported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S{e}(1)(ii), if applicable. **Persons who are to resp nd to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {1}------------------------------------------------ | | OATH OR AFFIRMATION | |--|---------------------| | | | | I, Robert Goodman | | swear {or affirm) that, to the best of my knowledge and belief, the | | |--------------------------------------------------------------------|--------------|-------------------------------------------------------------------------------------------------------|-------| | financial report pertaining to the firm of ERG Securities (US) LLC | | | as of | | 12/31 | 2~
1
I | is true and correct. I further swear {or affirm) that neither the company nor any | | | partner, officer, director, or | | 1 quivalent person, as the case may be, has any proprietary interest in any account classified solely | | | as that of a customer. | | | | | | | | | ![](_page_1_Figure_2.jpeg) Notary Public #### **This filing\*\* contains (check all applicable boxes):** - **!!!i** (a) Statement offinancial condition. - **!!!i** (b) Notes to consolidated statement of financial condition. - D (c) Statement of income ( oss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income ( s defined in § 210.1-02 of Regulation S-X). - D (d} Statement of cash flows. - D (e) Statement of changes lin stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - □ (g) Notes to consolidated lfinancial statements. - D (h) Computation of net c~ital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - □ (i) Computation oftangib e net worth under 17 CFR 240.18a-2. - D (j) Computation for deter ination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (k) Computation for dete mi nation of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.]8a-4, as applicable. - D (I) Computation for Dete~mination of PAB Requirements under Exhibit A to§ 240.15c3-3. - □ (m) Information relating fo possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (n) Information relating ~o possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 C1R 240.18a-4, as applicable. - D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 24ol1sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFd 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. J - □ (p) Summary of financialf:ata for subsidiaries not consolidated in the statement of financial condition. - **!!!i** (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in ccordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **!!!i** (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public aucountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D **(w)** Independent public abcountant'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 reportslon applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the date of t he previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). D (z) Other:--- --~-------- -------------- --- --- - ------- - - \*\*To request confidential t) atmen; of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ ## **ERG Securities (US) LLC (SEC I.D. No. 8-65376)** #### **Report on Audit of Financial Statements** Statement of Financial Condition and related notes For the year ended December 31, 2024 and Report of Independent Registered Public Accounting Firm {3}------------------------------------------------ ## **ERG Securities {US) LLC** Table of Contents December 31, 2024 | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Financial Statements | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3-6 | {4}------------------------------------------------ DAVID B. LUNDGREN, **MBA,** CPA TELEPHONE **(9 1** 3) **782-9530 FACSIMILE (91 3) 782-9564** #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Member of ERG Securities (US), LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of ERG Securities (US), LLC as of December 31, 2024, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly , in all material respects, the financial position of ERG Securities (US), LLC as of December 31 , 2024 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of ERG Securities (US), LLC's management. Our responsibility is to express an opinion on ERG Securities (US), LLC's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to ERG Securities (US), LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. We have served as ERG Securities (US), LLC's auditor since 2020. Olathe, Kansas February 7, 2025 {5}------------------------------------------------ ## **ERG Securities {US} LLC** Statement of Financial Condition December 31. 2024 #### **Assets** | Cash and cash equivalents | \$ | 38,618 | |---------------------------------------|----|------------------| | Fees receivable | | | | Other current assets | | 11 790 | | Total Assets | \$ | 50,408 | | Liabilities and Member's Equity | | | | Liabilities | | | | Commissions payable | \$ | | | Prepaid revenues | | | | Other liabilities | | 165 | | Total Liabilities | | 165 | | Member's equity | | 50,243 | | Total Liabilities and Member's Equity | | \$ ===5=0,=40=8= | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ ## **1. ORGANIZAJION AND NATURE OF BUSINESS** ERG Securities (US) LLC formerly known as Asperion Group LLC (the "Company"), was formed as a single member limited liability company on April 26, 2002 in the State of Delaware. The Company is a registered broker-dealer pursuant to the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority (FINRA), effective November 11, 2002. ERG Capital Partners (US) LLC (the "Member''), a Delaware Limited Liability Company, purchased Asperion Group LLC on 12/31/16 including the intangible asset of the FINRA Member License and certain prepaid accounts relating to the regulatory portion of the business. Effective January 3, 2017, the Company changed its name to ERG Securities (US) LLC. The Company provides strategic global advisory services for private placements and raises institutional capital. # **2. SIGNIFICANT ACCOUNTING pouc1Es** ### **Basis of Presentation** The Company's financial statements are presented in conformity with accounting principles generally accepted in the United States of America ("U.S. GMP"). ### **Revenue Recognition** The financial statements of the Company are prepared on the accrual basis of accounting. Accordingly, fee income is recognized when earned. ### **Cash and Cash Equivalents** The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Cash held by the Company is held in one global financial institution. The Company is subject to credit risk should the financial institution be unable to fulfill its obligations. #### **Foreign Currency** All assets and liabilities denominated in foreign currencies are translated into U.S. Dollar amounts at the date of valuation. Income and expense items denominated in foreign currencies are translated into U.S Dollar amounts on the respective dates of such transactions. #### **Fees Receivable, net** The Company records fees receivable at cost based upon the fee schedule that is agreed upon in each client contract. The fee receivables have a maturity of one year or less and arise from the Company's performance of services (see Note 3). On a quarterly basis, the Company evaluates its fees receivable and, if deemed necessary establishes an allowance for doubtful accounts, based on the history of past collections and current credit conditions. At December 31, 2024, fees receivable were \$0. {7}------------------------------------------------ #### **Income Taxes** No provision for Federal or State income taxes has been made in the accompanying financial statements since such liabilities and related expenses are the responsibility of the Member. #### **Use of Estimates** The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ### **Recent Accounting Pronouncements** All accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position. #### **3. REVENUE FROM CONTRACTS WITH CUSTOMERS** #### **Segment Reporting** The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including principal transactions, agency transactions, investment banking, investment advisory, and venture capital businesses. The Company has identified its Chief Financial Officer as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 5), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or make a distribution. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. The Company derived 79.66% of its total revenues from a single external customer located in Singapore in 2024. # **Private Placement Fees** #### **Advisor Fees** Performance obligations in these arrangements vary dependent on the contract. Advisor fees may include non-refundable, fixed quarterly retainers, management fees, and deposits. For the year ended December 31, 2024, it was determined that the customer simultaneously receives and consumes the benefits provided by the Company's performance as the Company performs and therefore, in accordance with FASB ASC 606-10-25-31, the Company recognized revenue over time as the performance occurred. {8}------------------------------------------------ The Company controls the service as it is transferred to the customer, and is therefore acting as a principal. Accordingly, the Company records revenues and out-of-pocket reimbursements on a gross basis. ## **Transaction Fees** The performance obligation may be the consummation of either the sale of securities or the raising of capital and may include success fees, performance fees or other percentage based fees. These fees are recognized as revenue when the performance obligation is satisfied, generally the trade date or the completion of a deal. The Company controls the service as it is transferred to the customer and is therefore acting as principal. ### **Disaggregation of Revenue** | Advisor Fees | 2,360,082 | |----------------------------|-----------| | | | | Transaction Fees | 310,781 | | | | | Reimbursed Client Expenses | 13,429 | | | | | Other Income | 1,146 | | | | | Total Revenues | 2,685,438 | In the following table, revenue is disaggregated. ## **Costs to Obtain a Contract with a Customer** The Company capitalizes the incremental costs of obtaining a contract with a customer if the costs (1) relate directly to an existing contract or anticipated contract, and (2) are expected to be recovered. These costs are included in the on the statement of financial condition as fees receivable until recovered. If the costs are not recovered, the fees are expensed on the Statement of Income and included in Bad Debt Expense. The Company uses an amortization method that is consistent with the pattern of transfer of goods or services to its customers. Any costs that are not incremental costs of obtaining a contract with a customer, such as costs of onboarding, training and support of independent financial advisors, would not qualify for capitalization. ## **Concentration of Customer Risk** ASC 280-10-50-42 requires disclosures about major customers and the extent of a company's reliance on those customers. For the year ended December 31, 2024 the Company had revenues exceeding 10% or more of its total revenues from two separate customers. Revenues from Astignes Capital Asia Pte. Ltd. totaled \$2,067,505.88, comprising 76.99% of the total year to date revenues. These revenues are derived from Singapore. The revenues from the Company's second and third largest customers, {9}------------------------------------------------ Sierra Agra USA LLC and Swiss Re Capital Markets Corporation, equaled \$210,000 and \$187,500 which comprised 7.94% and 7.82% respectively of the total revenues for the year ended December 31, 2024. The remaining revenue of approximately \$1.1 million is derived from 9 other separate customers. A registered securities representative of the Company generated approximately 83.97% of the Company's total revenue. This registered representative's compensation was approximately 83.96% of the Company's total commissions and related fees. The Company is economically dependent on this registered representative. The Company expects to maintain the relationship with this registered representative. #### **4. RELATED PARJY FEES** Effective January 1, 2020 the Company entered into a Services Agreement with ERG Advisory Services, LLC ("ERG"), a related party. Under the terms of the Services Agreement, ERG provides administrative and accounting services to the Company for a mutually agreed upon fixed fee per month. For the year ended December 31, 2024, the Company paid ERG \$60,000 represented by the admin fees on the Statement of Income. In addition, the Company paid ERG \$6,000 for rent for the year ended December 31, 2024. #### **5. NET CAPITAL REQUIREMENTS** The Company is a member of the Financial Industry Regulatory Authority (FINRA) and subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1 ), which requires the maintenance of minimum net capital of \$5,000 and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2024, the Company had excess capital in the amount of \$33,453. The aggregate indebtedness was \$165, which resulted in a minimum net capital required of \$5,000. The Company had net capital of \$38,453, which was in excess of the minimum \$5,000 by \$33,453. The Company's ratio of aggregate indebtedness was 0.43%, which is less than the maximum ratio of 1500%. # **6. SUBSEQUENT EVENTS** Management has evaluated subsequent events through February 7, 2025, the date on which the financial statements were available to be issued. Management is not aware of any additional subsequent events that require recognition or disclosure in the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.