# ANCHOR ASSET MANAGEMENT LLC X-17A-5 (2021-04-13) — Broker-dealer annual report - Company: ANCHOR ASSET MANAGEMENT LLC - Form: X-17A-5 - Filed: 2021-04-13 - Period: 2020-12-31 - Accession: 0001261468-21-000002 - CIK: 1261468 - File #: 8-66126 - Material weakness: No - Auditor: Michael T.Remus, CPA - Auditor location: Hamilton Square, NJ - Contact: Paul Ebert - Phone: 2017389373 - Signed by: Michelle Gunter (ceo) Original filing: https://www.sec.gov/Archives/edgar/data/1261468/000126146821000002/anchorlf.pdf --- {0}------------------------------------------------ | SEC FILE NUMBER | |-----------------| | 8-66126 | | REPORT FOR THE PERIOD BEGINNING 01/01/2020 | | | AND ENDING 12/31/2020 | | |--------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|------------|------------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Anchor Asset Management, LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | OFFICIAL USE ONLY
FIRM I.D. NO. | | | | | | | | | One East End Ave - Suite 10A | | | | | | | (No. and Street) | | | | | New York | NY | 10075 | | | | (City) | (State) | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Michelle Nicole Gunter, CEO | | | 212-421-2121 | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | Michael T. Remus, CPA | | | | | | | (Name - if individual, state last, first, middle name) | | | | | PO Box 2555 | Hamilton Square | N.I | 08690 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | Certified Public Accountant | | | | | | Public Accountant | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | {1}------------------------------------------------ | T. Michelle Nicole Gunter | swear (or affirm) that, to the best of | |-----------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------| | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | | Anchor Asset Management, LLC | ર્વાર | | of December 31 | 20 20 are true and correct. I further swear (or affirm) that | | netther 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: | | | NAJMA HANEEF
Notary Public - State of New York
NO. 01HA6320356
Qualified in New York County
My Commission Expires May 16, 2023 | Signaturg | |--------------------------------------------------------------------------------------------------------------------------------------------|------------------| | 2 | CEO/CCO
Title | - - - - - - - - - - - - - - {2}------------------------------------------------ *FINANCIAL STATEMENTS* *AND* *SUPPLEMENTARY INFORMATION* **For the Year Ended** **December 31, 2020** {3}------------------------------------------------ #### CONTENTS | | Page | |------------------------------------------------------------------------------------------------------------------------------------------|------| | Independent Auditors' Report | 1 | | Financial Statements | | | Statement of Financial Condition as of December 31, 2020 | 2 | | Statement of Operations for the Year Ended December 31, 2020 | 3 | | Statement of Changes in Member's Equity for the Year Ended | 4 | | December 31, 2020 | | | Statement of Cash Flows for the Year Ended December 31, 2020 | 5 | | Notes to Financial Statements | 6-10 | | Supplementary Schedule | | | | | | Schedule I
Computation of Net Capital Under
Rule 15c3-1 of the Securities
and Exchange Commission at December 31, 2019 | 11 | | Schedule II
- Computation for Determination of Reserve Requirements under Rule
15c3-3 of the Securities
and Exchange Commission | 12 | | Auditors' Review of Exemption Report | 13 | | Exemption Report | 14 | {4}------------------------------------------------ # **MICHAEL T. REMUS** *Certified Public Accountant* P.O. Box 2555 Hamilton Square, NJ 08690 **Tel:** 609-540-1751 **Fax:** 609-570-5526 #### Report of Independent Registered Public Accounting Firm To: The Member **Anchor Asset Management, LLC** #### **Opinion on the Financial Statements** I have audited the accompanying statement of financial condition of Anchor Asset Management, LLC as of December 31, 2020, and the related statements of operations, changes in member equity and cash flows for the year then ended, that are filed pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 and the related notes and schedules (collectively referred to as the financial statements). In my opinion, the financial statements present fairly, in all material respects, the financial position of Anchor Asset Management, LLC as of December 31, 2020 and its results of 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 Anchor Asset Management, LLC's management. My responsibility is to express an opinion on Anchor Asset Management, LLC's financial statements based on my audit. I am a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and I am required to be independent with respect to Anchor Asset Management, 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. I conducted my audit in accordance with the standards of the PCAOB. Those standards require that I 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. My 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. My 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. I believe that my audit provides a reasonable basis for my opinion. #### **Supplemental Information** The Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Determination of Reserve Requirements and Information Relating to Possession or Control Requirements Under SEC Rule 15c3-3 (*exemption)* has been subjected to audit procedures performed in conjunction with the audit of Anchor Asset Management, LLC's financial statements. {5}------------------------------------------------ The supplemental information is the responsibility of Anchor Asset Management, LLC's management. My 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 my opinion on the supplemental information, I evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In my opinion, the Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II Computation for Determination of Reserve Requirements and Information Relating to Possession or Control Requirements Under SEC Rule 15c3-3 (*exemption*), is fairly stated, in all material respects, in relation to the financial statements as a whole. # *Michael T. Remus* I have served as Anchor Asset Management, LLC's auditor since 2018. Michael T. Remus, CPA Hamilton Square, New Jersey April 8, 2021 {6}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION December 31, 2020 #### **ASSETS** | Cash | \$
49,202 | |------------------|--------------| | Fees receivable | 24,851 | | Prepaid Expenses | 4,105 | | | | | Total Assets | \$
78,158 | | | | #### **LIABILITIES AND MEMBER EQUITY** Liabilities | Accrued expenses | \$
38,891 | |----------------------------------------|--------------| | Total Liabilities | 38,891 | | Commitments and Contingencies (Note 7) | | | Member Equity | 39,267 | | Total Member Equity | 39,267 | | Total Liabilities & Member Equity | \$
78,158 | | | | {7}------------------------------------------------ # STATEMENT OF OPERATIONS Year Ended December 31, 2020 # REVENUES | Finders fees | \$
94,148 | |---------------------------------|----------------| | Other income | 2 | | | | | Total Revenues | 94,150 | | | | | EXPENSES | | | | | | Salaries and related expenses | 76,942 | | Professional Fees | 23,682 | | Regulatory Fees | 10,117 | | Communication & Data Processing | 2,521 | | General & Administrative | 6,124 | | Total Expenses | 119,386 | | Net Loss | \$
(25,236) | | | | {8}------------------------------------------------ # **ANCHOR ASSET MANAGEMENT, LLC** STATEMENT OF CHANGES IN MEMBER EQUITY Year Ended December 31, 2020 | Balance at January 1, 2020 | \$
94,503 | |------------------------------|--------------| | Capital Withdrawals | (30,000) | | Net Loss | (25,236) | | Balance at December 31, 2020 | \$
39,267 | {9}------------------------------------------------ #### STATEMENT OF CASH FLOWS Year Ended December 31, 2020 #### **CASH FLOWS FROM OPERATING ACTIVITIES** | Net Loss | \$
(25,236) | |----------------------------------------------------------------------------------------|----------------| | Adjustments to Reconcile Net Loss to Net | | | Cash Provided By Operating Activities: | - | | (Increase) Decrease in Operating Assets: | | | Other receivable | 2,004 | | Prepaid expenses | (451) | | Increase (Decrease) in Operating Liabilities:
Accounts payable and accrued expenses | 31,930 | | Net cash provided by operating activities | 8,247 | | Cash Flows From Investing Activities | - | | Cash Flows From Financing Activities | | | Distributions | (30,000) | | Net cash used in financing activities | (30,000) | | Net decrease in cash | (21,753) | | Cash at Beginning of Year | 70,955 | | Cash at End of Year | \$
49,202 | | Supplemental Cash Flows Disclosures | | | Cash paid for income taxes | \$
275 | | Cash paid for interest | \$
- | | | | {10}------------------------------------------------ Notes To Financial Statements December 31, 2020 #### **1 Organization and Nature of Business** Anchor Asset Management, LLC (the Company) is a broker dealer registered with the Securities Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority - FINRA and the Securities Investor Protection Corporation - SIPC. The Company was founded in August 2003 under the laws of the State of New York. The Company introduces investors to various investment partnerships, non-U.S. funds and managed accounts. The Company holds no customer funds or securities and does not participate in the underwriting of Securities. #### **2 Significant Accounting Policies** #### *(a) Basis of Presentation* The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") unless otherwise disclosed. #### *(b) Use of Estimates* The preparation of financial statements in conformity with generally accepted accounting principles 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 date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. #### *( c) Statement of Cash Flows* For purposes of the statement of cash flows the Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months, that are not held for sale in the ordinary course of business. The company has adopted the indirect method of presenting the statement of cash flows in accordance with current authoritative pronouncements. There were no cash equivalents at December 31, 2020. Cash is held at a major financial institutions and is insured by the Federal Deposit Insurance Corporation. #### *(d) Property and Equipment* Equipment is stated at cost, and is depreciated on a straight-line basis over its estimated useful life. Maintenance, repairs and renewals that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains and losses on disposition of equipment are included in income. Depreciation expense for the year ended December 31, 2020 was \$0. {11}------------------------------------------------ Notes To Financial Statements December 31, 2020 #### (*e) Revenue Recognition* Revenue from finders fees is generally recognized quarterly during the year based on information provided by the managers of the underlying investment vehicles. Revenue is recognized in accordance with ASC Topic 606 as services are render and the contracts identified performance obligations have been satisfied. There were no unsatisfied performance obligations at December 31, 2020. #### *(f) Income Taxes* The Company is treated as a corporation for federal income tax purposes As a result, the Company is subject to federal, state and local income taxes on its taxable income. The Company's tax returns and the amount of income or loss allocable to the member are subject to examination by federal and state taxing authorities. In the event of an examination of the Company's tax return, the tax liability of the member could be changed if an adjustment in the Company's income or loss is ultimately determined by the taxing authorities. Certain transactions may be subject to accounting methods for federal and state income tax purposes which differ from the accounting methods used in preparing the financial statements. Accordingly, the net income or loss of the member and the resulting balances in the members' capital account reported for federal and state income tax purposes may differ from the balances reported for those same items in these financial statements. The Company recognizes and measures its unrecognized tax benefits in accordance with ASC Topic 740, Income Taxes. Under that guidance the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of the financial reporting period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change. Management has determined that the Company has no uncertain tax positions that would require financial statement recognition at December 31, 2020. This determination will always be subject to ongoing evaluation as facts and circumstances may require. The Company remains subject to U.S. federal and state income tax audits for all years subsequent to 2016. In addition, no income tax related penalties or interest have been recorded for the year ended December 31, 2020. #### *(g) Advertising and Marketing* Advertising and marketing costs are expensed as incurred. *(h) General and Administrative Expenses* General and administrative costs are expensed as incurred. {12}------------------------------------------------ Notes to Financial Statements December 31, 2020 #### *(i) Fair Value Hierarchy* FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - *Level 1.* Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. - *Level 2.* Inputs other than quoted prices included in level 1 that are observable for the assets or liability either directly or indirectly. - *Level 3.* Inputs are unobservable for the assets or liability. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining the fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. For further discussion of fair value, see "Note 6 Fair Value" #### **3 Net Capital Requirements** The Company, as a registered broker-dealer in securities is subject to the SEC Uniform Net Capital Rule (Rule 15c3-1). The Company has elected to operate under that portion of the Rule which requires the Company maintain "net capital" equal to the greater of \$5,000 or 6 2/3% of aggregate indebtedness, as those terms are defined in the Rule. At December 31, 2020, the Company had net capital of \$10,311, which was \$5,311 in excess of its required minimum net capital of \$5,000. The Company had an AI/NC ratio of 377%. Advances to affiliates, contributions, distributions and other withdrawals are subject to certain notification and other requirements of Rule 15c3-1 and other regulatory rules. The Company does not claim exemption from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934. The Company relies on Footnote 74 of SEC Release 34-70073. {13}------------------------------------------------ # **Anchor Asset Management, LLC** Notes to Financial Statements December 31, 2020 #### **4 Leases** The Company conducts its operations from facilities that are suitable for business as a broker dealer in the home of the CEO since December 2014. No amount will be charged to the Company for any past, present of future use of the facilities. There is no written agreement. Rent expense for the year ended December 31, 2020 was \$0. #### **5 Concentrations and Economic Dependency** The Company's revenues are related to finders fees as discussed in Note 2 above. There is no assurance of future revenues from such fees. During 2020 the Company conducted business with one advisor pursuant to a Solicitor Agreement. Fees from this advisor totaled approximately \$94,148. At December 31, 2020 amounts due from this advisor were estimated at \$24,851. The Company maintains its cash at a financial institution in amounts that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts through December 31, 2020. As of December 31, 2020 there were no cash balances held in any accounts that were not fully insured. #### **6 Fair Value** Cash, receivables, accounts payable and other current liabilities are reflected in the financial statements at carrying value which approximates fair value because of the short-term maturity of these instruments. #### **7 Commitments and Contingencies** Pursuant to Securities and Exchange Commission Rule 15c3-1(e)(2) the Company may not authorize distributions to its members if such distributions cause the Company's net capital to fall below 120% of the Company's minimum net capital requirement. As of December 31, 2020 the Company was not in violation of this requirement. The Company had no lease or equipment rental commitments (other than as disclosed in Note 4 above), no underwriting commitments, no contingent liabilities, and had not been named as a defendant in any lawsuit at December 31, 2020 or during the year then ended. {14}------------------------------------------------ #### **8 Anti-Money Laundering Policies and Procedures** The Company is required to implement policies and procedures relating to anti-money laundering, compliance, suspicious activities, and currency transaction reporting and due diligence on customers who open accounts with the Company. At December 31, 2020 the Company had implemented such policies and procedures. #### **9 Exemption from Rule 15c3-3** The Company is exempt from the Securities and Exchange Commission Rule 15c3-3 and, therefore, is not required to maintain a "Special Reserve Bank Account for the Exclusive Benefit of Customers". #### **10 Subsequent Events** The Company has evaluated subsequent events occurring after the statement of financial condition date through the date of April 8, 2021 which is the date the financial statements were available to be issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which require disclosure in or adjustment to the financial statements. #### **11 COVID 19** In December, 2019 a novel strain of coronavirus surfaced in Wuhan, China, and has spread around the world, with resulting business and social disruption. The virus was declared a public Health Emergency of International Concern by the World Health Organization on January 30, 2020 and on March 11, 2020 was declared a pandemic. The operations and business results of the Company could be materially adversely affected. Significant estimates may be materially adversely impacted by local, state and national restrictions and events designed to contain the coronavirus. The magnitude of the impact is likely dependent upon the length and severity of the disruption. As of the date of these financial statements, the Company's operating results were not materially adversely impacted. #### **12 Change of Ownership** The Company is in the CMA process of Selling the Broker dealer. A Stock Purchase Agreement has been signed and the Company is awaiting approval from FINRA for the sale to be complete. {15}------------------------------------------------ **Supplementary Information Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934** **As of December 31, 2020** {16}------------------------------------------------ #### NET CAPITAL COMPUTATION IN ACCORDANCE WITH RULE 15c 3-1 December 31, 2020 | Schedule I | | | |----------------------------------------------------------------------|-------|----------| | NET CAPITAL | | | | Member Equity | \$ | 39,267 | | Less Non Allowables | | | | Prepaid Expenses | | (4,105) | | Other Receivables | | (24,851) | | Total | | (28,956) | | NET CAPITAL | | 10,311 | | Minimum Required Net Capital | | 5,000 | | Excess Net Capital | \$ | 5,311 | | AI/NC Ratio | 3.77% | | | Reconciliation with Company's Computation (included in | | | | Part II of Form X-17A-5 as of December 31, 2020) | | | | As Amended on April 10, 2021 | | | | Net Capital, as reported in Company's Part II unaudited Focus Report | \$ | 10,310 | | Net Capital, per above | | 10,311 | | Difference | \$ | (1) | There are no material differences between the net capital reflected in the above computation and the net capital reflected in the Company's FOCUS Report as of December 31, 2020. {17}------------------------------------------------ # **Computation for Determination of Reserve Requirements and Information Relating to Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Act of 1934 December 31, 2020** #### SCHEDULE II #### YEAR ENDED December 31, 2020 The Company does not hold customers' cash or securities and, therefore, has no obligations under SEC Rule 15c3-3 pursuant to Footnote 74 of SEC Release 34-70073 under the Securities Exchange Act of 1934. {18}------------------------------------------------ # **MICHAEL T. REMUS** # *Certified Public Accountant* P.O. Box 2555 Hamilton Square, NJ 08690 > **Tel:** 609-540-1751 **Fax:** 609-570-5526 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM # To: The Member **Anchor Asset Management, LLC** I have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report, in which (1) Anchor Asset Management, LLC (the "Company") stated that the Company does not hold customers' cash orsecurities on behalf of customers and limitsits business to activities involving hedge funds and, therefore has no obligations under Rule 15c3-3 under the Securities Exchange Act of 1934. In addition, as a result of the Company's having no obligations under SEC Rule 15c3-3, it may file an Exemption Report and (2) the Company stated that it had no exceptions under SEC Rule 15c3-3 throughout the year ended December 31, 2020. The Company did not directly or indirectly receive, hold or otherwise owe funds or securities for or to customers, did not carry accounts of or for customers, and did not carry PAB accounts as defined in Rule 15c3-3. Management is responsible for compliance with 17 C.F.R. § 240. 15c3-3 and its statements. My review was conducted in accordance with the standards ofthePublicCompany AccountingOversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about the Company's compliance with 17 C.F.R. § 240. 15c3-3. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management'sstatements. Accordingly, I do not express such an opinion. Based on my review, I am 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 Rule 15c3-3 under the Securities Exchange Act of 1934. *Michael T. Remus* Michael T. Remus, CPA Hamilton Square, New Jersey April 8, 2021 {19}------------------------------------------------ # **Exemption Statement pursuant to SEC Rule 17a-5 For the Year Ended December 31, 2020** # *Anchor Asset Management LLC Exemption Statement* Anchor Asset Management LLC (the "Company") is a registered broker-dealer subject to Rule 1 7a-5 promulgated by the Securities and Exchange Commission (the "SEC"). To the best of its knowledge and belief; the Company states the following: The Company does not hold customers' cash or securities on behalf of customers, limits its business to activities involving hedge funds and, therefore has no obligations under SEC Rule 15c3-3 under the Securities Exchange Act of 1934. Further, the Company did not directly or indirectly receive, hold or otherwise owe funds or securities for or to customers, did not carry accounts of or for customers, and did not carry PAB accounts as defined in Rule 15c3-3. In addition, as a result of the Company having no obligations under SEC Rule 15c3-3, it may file an Exemption Report. The Company had no exceptions under SEC Rule 15c3-3 throughout the year ended December 31, 2020. Anchor Asset Management LLC I, Michelle Nicole Gunter, swear ( or affirm) that, to my best knowledge and belief, this Exemption Statement is true and correct. Mi elle Nicole Gunter Chief Executive Office Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.