# AGM SECURITIES LLC X-17A-5 (2020-02-28) — Broker-dealer annual report - Company: AGM SECURITIES LLC - Form: X-17A-5 - Filed: 2020-02-28 - Period: 2019-12-31 - Accession: 0001295234-20-000001 - CIK: 1295234 - File #: 8-66568 - Material weakness: No - Auditor: WithumSmith & Brown, PC - Auditor location: Whippany, NJ - Contact: Howard Spindel - Phone: 212-897-1688 - Signed by: Howard Spindel (FinOp) Original filing: https://www.sec.gov/Archives/edgar/data/1295234/000129523420000001/agm19s.pdf --- {0}------------------------------------------------ | NITED STATES | |-------------------------------------| | SECURITIES A~ D EXCHANGE COMMISSION | | Washington, D.C. 20549 | # **ANNUAL AUDITED REPORT FORM X-17 A-5 PART** Ill | | 0 MB APPROVAL | |---------------------------|-----------------| | 0MB Number: | 3235-0123 | | Expires: August 31, 2020 | | | Estimated average burden | | | hours per response 12.00 | | | | SEC FILE NUMBER | | | | **8 . 66568** # FACING PAGE Info rmation Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Ruic 17a-5 Thereunder | 1/1/2019 | AND ENDING | -----------
12/31/2019 | | |-----------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | ~11'1/DD'YY | | MM/DD/YY | | | | | | | | | | OFFICIAL USE ONLY | | | AGM Securities LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | | | | (No and Streel) | | | | | New York | | 10006 | | | (State) | | (Zip Code) | | | | | | | | Howard Spindel
212-897 -1 688 | | | | | | | (Arca Code - Telephone No.) | | | | | | | | | | | | | WithumSmith + Brown, PC | | | | | | | | | | Whippany | NJ | 07981 | | | | (S1a1e) | (Zip Code) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Cuy) | -------------
A. REGISTRANT IDENTIFICATION
39 Broadway, Suite 3300, Room 14
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT h REGARD TO THIS REPORT
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report*
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D Accountant not resident in United States or any of its possessions
FOR OFFICIAL liSE ONLY | | *\*Claims for exemplion from the requiremellf 1h01 the 01111110/ repor1 be covered by 1/,e opinion of an independenl public acco1111ta111 11111st be supported by a statemelll of facts and circ11111s1a11ces relied* 011 *as the basis/or the exemplion. See section* 240. *I 7a-5(e){2).* SEC 1410 {06-02) *Potential persons who are to respo11tl to the collectio11 of information co11tai11ed in tl,is f orm are 1101 required to respond 1111/ess the form displays a c11rre111/y valid* 0MB *co11trol 1111111ber.* {1}------------------------------------------------ #### **AFFIRMATION** I. Howard Spindel. affirm that, to the best of my knowledge and belie( the accompanying financial statement pertaining to AGM Securities LLC for the year ended December 31. 2019. is true and correct. I further affin11 that neither the Company nor any officer or director has any proprietary interest in any account classified solely as that of a customer. / '/ Signature Financial and Operations Principal Title ![](_page_1_Picture_6.jpeg) {2}------------------------------------------------ ### **This report \*\* contains (check all applicable boxes):** - [x] Report of Independent Registered Public Accounting Firm. - [x] Facing Page. - [x] Statement of Financial Condition. - [ J Statement of Operations. - [ ] Statement of Changes in Member's Equity. - [ ] Statement of Cash Flows. - [ ] Statement of Changes in Liabilities Subordinated to Claims of General Creditors (not applicable). - [ ] Computation of Net Capital for Brokers and Dealers Pursuant to Ruic I 5c3-I under the Securities Exchange Act of 1934. - [ ] Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule I 5c3-3 under the Securities Exchange Act of 1934. - [ ] Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule I 5c3-3 under the Securities Exchange Act of 1934 (not - applicable). - [ ] A Reconciliation, including appropriate explanations, of the Computation of Net Capital Pursuant to Rule 15c3- I and the Computation for Determination of Reserve Requirements Under Rule 15c3-3. - [ ] A Reconciliation Between the Audited and Unaudited Statements of Financial Condition With Respect to Methods of Consolidation (not applicable). - [x] An Oath or Affirmation. - [ ] A copy of the SIPC Supplemental Report. - [ ] A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit (Supplemental Report on Internal Control). - [ ] Independent Auditors' Report on Internal Control Required by SEC Rule I 7a-5(g)( I). - [ ] Independent Auditors' Report Regarding Rule 15c3-3 Exemption. - [ ] Rule 15c3-3 Exemption Report {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Managing Member of AGM Securities LLC # Opinion on the Financial Statement We have audited the accompanying statement of financial condition of AGM Securities LLC (the "Company"), as of December 31 , 2019, 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 the Company as of December 31 , 2019, in conformity with accounting principles generally accepted in the United States of America. # **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this 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 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 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 statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2014. February 25, 2020 {4}------------------------------------------------ #### **AGM SECURITIES LLC** #### STATEMENT OF FINANCIAL CONDfTION #### DECEMBER 31, 2019 #### **ASSETS** | Cash | \$
493,311 | |---------------------------------|---------------| | | \$
493.311 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities: | | | Due to parent | \$
150,000 | | Accounts payable | 1,328 | | | 151 ,328 | | Member's equity | 341 ,983 | | | \$
493,311 | See accompanying notes to financial statement {5}------------------------------------------------ ## **AGM SECURITIES LLC** #### NOTES TO FINANCIAL STATEMENT ### DECEMBER 31, 2019 ## I. **Nature of business and summary of significant accounting policies** # *Nawre of Business* AGM Securities LLC (the "Company"), a wholly-owned subsidiary of AGM Holdings LLC (the ··Parent''), is a broker-dealer registered with the Securities and Exchange Commission ("SEC") pursuant to section l S(b) of the Securities Exchange Act of 1934. The Company is also a member of the Financial Industry Regulatory Authority ("FINRA .. ). United Talent Agency, LLC ("UTA") is the 100% indirect owner of the Company. The Company's operations consist primarily of private placement of securities and corporate finance advisory services. # *Basis of Presentation* The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") which 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 amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The Company had no outstanding receivables, contract assets or contract liabilities at January I, 2019 and at December 31, 2019. # *Fair Value Measurements* The Company follows Financial Accounting Standard Board (FASB) guidance on Fair Value Measurements which defines fair value and establishes fair value hierarchy organized into three levels based upon the input assumptions used in pricing assets. Level 1 inputs have the highest reliability and are related to assets with unadjusted quoted prices in active markets. Level 2 inputs relate to assets with other than quoted prices in active markets which may include quoted prices for similar assets or liabilities or other inputs which can be corroborated by observable market data. Level 3 inputs are unobservable inputs and are used to the extent that observable inputs do not exist. As of and for the year ended December 3 1, 2019 all of the Company·s investments received as income on principal transactions were valued using Level 3 inputs. #### *Income Taxes* The Company is a single member limited liability company for federal, state, and local income tax purposes. As such. it is a disregarded entity for tax purposes and does not pay any taxes. The Company does not reflect any taxes in its financial statements. The Company's income or loss is taken into consideration in the tax returns of its Parent's owner. At December 31, 2019, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances may require. {6}------------------------------------------------ # **AGM SECURITIES LLC** ## NOTES TO FINANCIAL STATEMENT #### DECEMBER 31, 2019 # **2. Net capital requirement** The Company. as a member of FIN RA, is subject to the Securities and Exchange Commission Uniform Net Capital Rule J 5c3-J. This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to l and that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed IO to I. At December 31. 2019, the Company's net capital was approximately \$342.000, which was approximately \$242,000 in excess of its minimum requirement of \$ 100,000. #### **3. Compliance with Rule 15c3-3** The Company does not handle cash or securities on behalf of customers and accordingly has no obligation under SEC Rule 15c3-3. #### **4. Related party transactions** Pursuant to an administrative service agreement (the "Agreement"') between the Company and the Parent, the Company pays a monthly administrative fee for utilizing certain resources of the Parent. The Company was charged \$120,000 for the year ended December 31, 2019 under the Agreement. As of December 31, 2019, all of these expenses remain payable to the Parent. In addition, \$30,000 of the prior year's expenses remain payable to the Parent. The parent paid expenses of \$37,028 on behalf of the Company and deemed it a contribution. # **5. Concentrations** The Company maintains its cash balance in one financial institution. The Company does not consider itself to be at risk with respect to its cash. The company earned 85% of its revenues from two customers. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.