# AGM SECURITIES LLC X-17A-5 (2021-03-01) — Broker-dealer annual report - Company: AGM SECURITIES LLC - Form: X-17A-5 - Filed: 2021-03-01 - Period: 2020-12-31 - Accession: 0001295234-21-000002 - CIK: 1295234 - File #: 8-66568 - Material weakness: No - Auditor: WithumSmith & Brown - Auditor location: Whippany, NJ - Contact: Howard Spindel - Phone: 2128971688 - Signed by: Howard Spindel (Principal Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1295234/000129523421000002/AGM20s.pdf --- {0}------------------------------------------------ STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2020 {1}------------------------------------------------ UNlTED ST A TES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # **ANNUAL AUDITED REPORT FORM X-17A-5 PART** Ill | 0MB APPROVAL
0MB Number: | | 3235-0123 | | |-----------------------------|---------------------------|--------------------------|--| | | Expires: October 31, 2023 | | | | | Estimated average burden | | | | | | hours per response 12.00 | | | | | SEC FILE NUMBER | | | | 8- | 66568 | | ## **FACING PAGE** Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | ------------
MM/DO /YY
A. REGISTRANT IDENTIFICATION
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
42 Broadway, Suite 12-129
(No. and Street)
New York
(State) | NAME AND TELEPHONE NUMBER OF PERSON TO CONT ACT fN REGARD TO THIS REPORT | -----------
MMJDO/YY
OFFICIAL USE ONLY
FIRM ID. NO.
10004
(Zip Code) | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 212-897-1688 | | | | | (Area Code -- Telephone No.) | | | | | | | | | | | | | | | | | | | | | | | Whippany | NJ | 07981 | | | | (State) | (Zip Code) | | | | | | | | | | | | | | WithumSmith + Brown, PC
(City)
D Accountant not resident in United States or any of its possessions | B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
(Name - i( indil'id11al, stale las 1. firs,, middle name)
FOR OFFICIAL USE ONLY | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public acco1111ta11t must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See section 240. I 7aa5(e)(2).* | SEC 1410 (06-02) | Potential persons who are to respond to the collection of information | | |------------------|-------------------------------------------------------------------------------|--| | | contained in t/ris form are not required to respond unless tire form displays | | | | a currently valid 0MB control number. | | {2}------------------------------------------------ #### **AFFffiMA TION** I, Howard Spindel, affinn that, to the best of my knowledge and belief, the accompanying financial statements and supplemental schedules pertaining to AGM Securities LLC for the year ended December 31 , 2020, are true and correct. I further affirm that neither the Company nor any officer *or* director has any ' *I* proprietary interest in any account classified solely as that of a c,6mer. I *) I* Signature / Principal Financial Officer Title <... /!. *1* **//m·** *-:-1 P~f;;-* MONET WATSON ".:I : ~ NOtdry Public • Stdtl' of FIQri(I~ '·1~ ,/f··: Commission *I* GG 207272 My Comm. Expir~ Apr 15. 2022 {3}------------------------------------------------ ## **This report\*\* contains (check all applicable boxes):** - [x] Report of Independent Registered Public Accounting Firm. - [x] Facing Page. - [x] Statement of Financial Condition. - [ ] Statement of Operations. - [ ] Statement of Changes in Member's Equity. - [ ] Statement of Cash Flows. - **r** l Statement of Changes in Liabilities Subordinated to Claims of General Creditors (not applicable). - [ ] Computation of Net Capital for Brokers and Dealers Pursuant to Rule 15c3-1 under the Securities Exchange Act of 1934. - [ ] Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934. - [ ] Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934 (not applicable). - [ ] A Reconciliation, including appropriate explanations, of the Computation of Net Capital Pursuant to Rule **l** 5c3-l and the Computation for Determination of Reserve Requirements Under Rule l 5c3-3. - [ ] 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). - **r** l Independent Auditors' Report on Internal Control Required by SEC Rule l 7a-5(g)(l ). - [ ] Independent Auditors' Report Regarding Rule l 5c3-3 Exemption. - [ ] Rule 15c3-3 Exemption Report {4}------------------------------------------------ ![](_page_4_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 , 2020, 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 , 2020, 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 26, 2021 {5}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31, 2020 #### **ASSETS** | Cash | \$
612,217 | |---------------------------------------|-------------------| | Accounts receivable | 175,000 | | Total assets | \$
787 217 | | UABILITCES AND MEMBER'S EQUITY | | | Liabilities: | | | Due to Parent | \$
70,000 | | Deferred revenue | 175,000 | | Total liabilities | 245,000 | | Member's equity | 542,217 | | Total liabilities and member's equity | \$
787 21
7 | See accompanying notes to financial statement {6}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENT ## DECEMBER 31, 2020 ## **1. Nature of business and summary of significant accounting policies** # *Nature 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 5(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 at January 1, 2020 and \$175,000 at December 31, 2020. The Company has \$0 of contract assets at January I, 2020 and \$0 at December 31, 2020. The Company has \$0 of deferred revenue at January I, 2020 and \$175,000 at December 31, 2020. ## *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, 2020, 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. ## **2. Net capital requirement** The Company, as a member ofFINRA, is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1. 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 1 and that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31, 2020, the Company's net capital was approximately \$542,000, which was approximately \$442,000 in excess of its minimum requirement of \$100,000. # **3. Compliance with Rule 15c3-3** {7}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENT #### DECEMBER 31, 2020 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, 2020 under the Agreement. As of December 31, 2020, \$70,000 of these expenses remain payable to the Parent. The Parent paid expenses of \$26,047 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's accounts receivable is from one customer. ### **6. New accounting pronouncements** In June 2016, the financial Accounting Standards Board ("FASB'') issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the F ASB 's guidance on the impairment of financial instruments. The ASU adds to GAAP, an impairment model (known as the current expected credit loss ("CECL") model) that is based on expected losses rather than incurred losses. Under the new guidance, the Company recognizes as an allowance, its estimate of lifetime expected credit losses, which the F ASB believes will result in more timely recognition of such losses, if any. The ASU is also intended to reduce the complexity of GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. Further, the ASU makes targeted changes to the impairment model for available-for-sale debt securities. The new CECL standard became effective on January I , 2020, and the Company applied the modified retrospective method of adoption which resulted in no adjustment to retained earnings as the effective date. The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments, including fees and other receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company's expectation is that the credit risk associated with fees and other receivables is not significant accordingly, the Company has not provided an allowance for credit losses at December 31, 2020. #### 7. **COVID-19** During the 2020 calendar year, the World Health Organization has declared COVID-19 to constitute a "Public Health Emergency of International Concern". This pandemic has disrupted economic markets and the economic impact, duration and spread of the COVID-19 virus is uncertain at this time. The financial performance of the Company is subject to future developments related to the COVID-19 outbreak and possible government advisories and restrictions placed on the financial markets and business activities. The impact on financial markets and the overall economy, all of which are highly uncertain, cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period the Company's results may be materially affected. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.