# AGM SECURITIES LLC X-17A-5 (2022-03-04) — Broker-dealer annual report - Company: AGM SECURITIES LLC - Form: X-17A-5 - Filed: 2022-03-04 - Period: 2021-12-31 - Accession: 0001295234-22-000001 - CIK: 1295234 - File #: 8-66568 - Type: Broker-dealer - Material weakness: No - Auditor: WithumSmith and Brown, PC - Auditor location: Whippany, NY - Contact: Howard Spindel - Phone: 2128971688 - Signed by: Howard Spindel (Principal Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1295234/000129523422000001/AGM21s.pdf --- {0}------------------------------------------------ STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING flRM DECEMBER 31, 2021 {1}------------------------------------------------ #### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL REPORTS FORM X-17A-5 PART III | OMB APPROVAL | |--------------------------| | OMB Number: 3235-0123 | | Expires: Oct. 31, 2023 | | Estimated average burden | | hours per response: 12 | | | SEC FILE NUMER 8- 66568 FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Excha nge Act of 1934 FILING FOR THE PERIOD BEGINNING 01 /01 /21 AND ENDING 12/31 /2 ·1 MM/DDNY ~---------------------~ MM/DDNY # A. REGISTRANT IDENTIFICATION # NAME OFFIRM: AGM Securities LLC TYPE OF REGISTRANT (check all applicable boxes): ~ Broker-dealer D Security-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 42 Broadway, Suite 12-129 | | (No. and Street) | | | | |----------------------------------------------------------------------------|------------------------------------------------------------|-----------------|------------|--| | New York | NY | | 10004 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Howard Spindel | (212) 897-1688 | | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose reports are contained in this filing* | | | | | | WithumSmith + Brown, PC | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 200 Jefferson Park Suite 400 | Whippany | NJ | 07981-1070 | | | (Address) | (City) | (State) | (Zip Code) | | 10/08/2003 100 (Date of Registration with PCAOB)(if applicable) (PCAOB Registration Number, ifapplicable) #### 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 supp-0rted by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240. l 7a-5(e)( I )(ii), if applicable. Persons who arc to respond to the collection of information contained in this form arc not required to respond unless the form displays a currently valid OMB control number. {2}------------------------------------------------ # AFFIRMA TJON I, Howa rd Spindel , swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to AGM Securities LLC as of 12/31/21 , 1s 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 accou t classified solely as that of a customer. " j *( /* Signature Principal Financial Officer Title .'~~~· DORA PIEDRAHITA ;.;:i: ~..\_ ; Notary Publlc ·State of Fiorica · ".fi,"'J(<:f: Comm1ss1on : GG 309699 My Comm. E~ )lres Mar ·o. 2023 {3}------------------------------------------------ # This filing\*\* contains (check all applicable boxes): - [El (a) Statement of financial condition. - l!l (b) Notes to unconsolidated or consolidated statement of financial condition, as applicable. - D ( 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 § 2 JO. l-02 of Regulation S-X). - D ( d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or members' or sole proprietor's equity, as applicable. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to unconsolidated or consolidated financial statements,, as applicable. - D (h) Computation of net capital under 17 CFR 240.15c3-l or 17 CFR 240.18a-l, as applicable. - D (i) Computation of tangible net worth under I 7 CFR 240.18a-2. - D U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240. l 5c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3- 3 or Exhibit A to 17 CFR 240. I 8a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.l 5c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240. 15c3- 3(p)(2) or I 7 CFR 240. l 8a-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 240. l 5c3-l , 17 CFR 240. l 8a-l , or 17 CFR 240. l 8a-2, as applicable, and the reserve requirements under 17 CFR 240. l 5c3-3 or 17 CFR 240. J 8a-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. - [El (q) Oath or affirmation in accordance with 17 CFR 240. l 7a-5, J 7 CFR 240. l 7a-12, or 17 CFR 240. J 8a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240. I 7a-5 or I 7 CFR 240. l 8a-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.l7a-5 or 17 CFR 240.J8a-7, as applicable. - [El ( t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240. J7a-5, 17 CFR 240. l 8a-7, or 17 CFR 240.J 7a-J2, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240. l 7a-5 or 17 CFR 240. l 8a-7, as applicable. - D ( w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240. l 7a-5 or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1 e or 17 CFR 240. l 7a-l 2, as applicable. - D (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. l 7a-12(k). D(z) Other:------------------------------------ - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240. J 7a-5(e)(3) or 17 CFR 240. J 8a-7(d)(2), as applicable.* {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Managing Member and Those Charged with Governance 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 , 2021 , and the related notes (collectively referred to as the "financial statemenf'). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31 , 2021 , 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 publ ic 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 pllan 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. March 1, 2022 {5}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31 , 2021 #### **ASSETS** | Cash | \$
897,217 | |---------------------------------------|-----------------| | Accounts receivable | 350,000 | | Total assets | \$
1,247,217 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities: | | | Accounts payable | \$
1,875 | | Due to Parent | 10,000 | | Deferred revenue | 175,000 | | Total liabilities | 186,875 | | Member's equity | l,060,342 | | Total liabilities and member's equity | \$
1,247,217 | See accompanying notes to financial statement {6}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENT ## DECEMBER 31 , 2021 ## **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 I 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") whiich requires management to make estimates and assumptions that affe.ct 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 \$175,000 outstanding receivables at January 1, 2021 and \$350,000 at December 31, 2021. The Company had \$0 of contract assets at January **l,** 202 l and \$0 at December 31, 2021. The Company had \$175,000 of deferred revenue at January I, 2021 and \$175,000 at December 31, 2021. # *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 indirect owner. At December 3 I , 2021, 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. #### *The Allowance for Credit Losses* ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326") impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset. Under ASC 326, the Company could determine there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the client). 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. Under the standard, the allowance for credit losses must be deducted from the amortized cost of the financial asset to present the net amount expected to be collected. {7}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENT ## DECEMBER 31 , 2021 ## 1. Nature of business and summary of significant accounting policies (continued) ## *The Allowance for Credit Losses (continued)* The statement of operations would reflect the measurement of credit losses for newly recognized financial assets as well as the expected increases or decreases of expected credit losses that might have taken place during the period. The Company has not provided an allowance for credit losses at December 31 , 2021. ## 2. Net capital requirement The Company, as a member of FINRA, is subject to the Securities and Exchange Commission Uniform Net Capital Rule l 5c3-l. This Ru! e requires the maintenance of minimum net capital and that the ratio of aggr·egate indebtedness to net capital, both as defined, shall not exceed 15 to I 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, 2021, the Company's net capital was approximately \$710,000, which was approximately \$610,000 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, 2021 under the Agreement. As of December 31, 2021, \$10,000 of these expenses remain payable to the Parent. The Parent paid expenses of \$11,925 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. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.