# JEGI LLC X-17A-5 (2024-02-28) — Broker-dealer annual report - Company: JEGI LLC - Form: X-17A-5 - Filed: 2024-02-28 - Period: 2023-12-31 - Accession: 0001321029-24-000001 - CIK: 1321029 - File #: 8-66867 - Type: Broker-dealer - Material weakness: No - Auditor: YSL & Associates LLC - Auditor location: New York, NY - Contact: Bill Hitzig - Phone: 212-754-0710 - Signed by: William Hitzig (CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1321029/000132102924000001/public.pdf --- {0}------------------------------------------------ # JEGI,LLC (A WHOLLY OWNED SUBSIDIARY OF THE JORDAN, EDMISTON GROUP, INC.) FINANCIALSTATEMENTAND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2023 {1}------------------------------------------------ # **JEGI, LLC (A WHOLLY OWNED SUBSIDIARY OF THE JORDAN, EDMISTON GROUP, INC.) CONTENTS** | Report oflndependent Registered Public Accounting Firm
1 | | |-------------------------------------------------------------|--| | Financial Statements: | | | Statement of Financial Condition 2 | | | Notes to Financial Statement 3-6 | | {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) 11 Broadway, Suite 700, New York, NY 10004 Tel: (212) 232-0122 Fax: (646) 218-4682 ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of JEGILLC ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of JEGI LLC (the "Company") as of December 31, 2023, and the related notes ( collectively refe1Ted 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, 2023 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 the Company's financial statement based on our audit. We are a public accounting fum 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 seclllities laws and the applicable mles and regulations of the Secmities and Exchange Commission and the PCAOB. We conducted om audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assmance about whether the financial statement is free of mate1ial misstatement, whether due to e1Tor or fraud. Our audit included performing procedures to assess the 1isks of material misstatement of the financial statement, whether due to enor or fraud, and perfo1ming procedmes that respond to those 1isks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosmes 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 om opinion. We have se1ved as JEGI LLC's auditor since 2021. NewYork, NY Febmaiy 22, 2024 {3}------------------------------------------------ # **JEGI, LLC (A WHOLLY OWNED SUBSIDIARY OF THE JORDAN, EDMISTON GROUP, INC.)** ## **STATEMENT OF FINANCIAL CONDITION** ## **DECEMBER 31, 2023** # **ASSETS** | Cash
Accounts receivable
Prepaid expenses | \$
\$ | 161,456
1,560
81 | |--------------------------------------------------------------------------------------------------|----------|------------------------| | Total Assets | \$ | 163,097 | | LIABILITIES AND MEMBER'S EQUITY | | | | Liabilities:
Accounts payable to related pa1t
ies
Accounts payable and accrned expenses | \$ | 18,003
17,200 | | Total Liabilities | | 35,203 | | Member's equity | | 127,894 | | Total Liabilities and Member's Equity | \$ | 163,097 | The accompanying notes are an integral pa1t of these financial statements. {4}------------------------------------------------ # **JEGI, LLC (A WHOLLY OWNED SUBSIDIARY OF THE JORDAN, EDMISTON GROUP, INC.) NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2023** # **1. ORGANIZATION AND NATURE OF BUSINESS** JEGI, LLC (the "Company") was organized as a single member Limited Liability Company in November 2004, in the state of New York and is a wholly owned subsidia1y of Jordan, Edmiston Group, Inc (the "Parent"). The Company is a registered broker-dealer with the Secmities and Exchange Commission (SEC). The Company was granted membership in the Financial Industiy Regulato1y Authority ("FINRA") on September 1, 2005, the Central Registi·ation Deposit01y ("CRD") membership effective date. The Company advises media and info1mation companies with respect to mergers and/or acquisitions involving the raising of capital and sale of stock. The Company is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corp ("SIPC"). ### Recent Issued Accounting Pronouncements The Company does not believe that the adoption of any recently issued, but not yet effective, accounting standards will have a material effect on its financial position and results of operations. # **2. SIGNIFICANT ACCOUNTING POLICIES** ## Basis of Presentation The accompanying financial statements have been prepared in confo1mity with U.S generally accepted accounting principles ("GAAP") and the rnles and regulations of the United States Securities and Exchange Commission (the "Commission"). It is management's opinion, that all material adjustments (consisting of n01mal recuning adjustments) have been made which are necessary for a fair financial statement presentation. # Use of Estimates The preparation of financial statements in confo1mity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the repo1ted amounts of assets and liabilities, and disclosure of contingent assets, and liabilities at the date of the financial statements, and the rep01ted amounts of revenues and expenses during the rep01ting period. Actual results could differ from those estimates ### Accounting Basis The Company uses the accrnal basis of accounting for financial statements. Accordingly, revenues are recognized when services are rendered and expenses realized when the obligation is incmTed. ### Cash and Cash Equivalents The Company considers all highly liquid investments with a matulity of three months or less when purchased to be cash equivalents. Cash equivalents ai·e canied at cost, which approximates market value. # Fair Values of Financial lnstluments Financial Accounting Standards Board Accounting Standards Codification ("ASC") 825, "Financial Instiuments," requires the Company to disclose estin1ated fair values for its financial instrnments. Fair value estimates, methods, and assumptions are set forth below for the Company's financial instiuments: The canying amount of cash, accounts receivable, prepaid expenses, accounts payable and accrned expenses and accounts payable to related parties, approximate fair value because of the sh01t maturity of those instruments. {5}------------------------------------------------ ### **JEGI, LLC** # **(A WHOLLY OWNED SUBSIDIARY OF THE JORDAN, EDMISTON GROUP, INC.) NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2023** # **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** ### Revenue Recognition The Company recognizes revenue to depict the transfer of promised services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those services. The guidance ASC 606 requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, ( c) determine the transaction price, ( d) allocate the transaction price to the performance obligations in the contract, (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The Company typically enters into contracts with clients to provide merger and acquisition advisory services, calling for periodic retainer fees to be paid during the term of the anangement, and a success fee to be paid out once the merger or acquisition (the "transaction") is successfully completed, usually on the closing date. This success fee is typically based on a percentage of the total consideration of the transaction, although in certain cases it may be a flat fee. The retainer fee is recognized over time in which the performance obligations are simultaneously provided by the Company and consumed by the client. As of December 31, 2023, \$52,880 retainer fees and \$2,746,886 success fees were recognized for financial and banking advisory services provided. Contract assets arise when the revenue associated with the contract is recognized prior to the Company's unconditional right to receive payment under a contract with a customer and are derecognized when either it becomes a receivable or the cash is received. Contract liabilities arise when customers remit contractual cash payments in advance of the Company satisfying its performance obligation under the contract and are derecognized when the revenue associated with the contract is recognized when the performance obligation is satisfied. The Company had no contract assets or liabilities at January 1, 2023 and December 31, 2023. ### Significant Judgments The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. ### Allowance for Credit Losses The Company follows ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"). The Company identified no fees receivable as impacted by the guidance. An allowance for credit losses may be based on the Company's expectation of the collectability of its receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and cun-ent 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 its receivables is not significant. Accordingly, the Company has not provided an allowance for credit losses at December 31, 2023. {6}------------------------------------------------ ## **JEGI, LLC (A WHOLLY OWNED SUBSIDIARY OF THE JORDAN, EDMISTON GROUP, INC.) NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2023** # **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** ## Concentrations of Credit Risk The Company places its cash with a high credit quality financial institution. The Company's account at this institution is insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. ## Income Taxes The Company is a single member LLC and considered a disregarded entity for income tax filing purposes. The Company is included in the tax return filed by its parent. The parent's operations, exclusive of the Company, resulted in Federal and state tax liabilities. The Company's stand-alone results of operations generated no tax liability. Accordingly, no income tax expense has been allocated to the company on a separate repo1ting basis. # **3. NET CAPITAL** The Company is subject to the SEC Unif01m Net Capital Rule (Rule 15c3-l), which requires the maintenance of mininmm net capital of \$5,000, and requires that the ratio of aggregate indebtedness to net capital, both as defined, not exceed 15 to 1. The rnle also provides that equity capital may not be withdrawn, cash dividends paid or the Company's operations expanded, if the resulting net capital ratio would exceed 10 to 1. At December 31, 2023, the Company had net capital of \$126,253 which was \$121,253 in excess of the FINRA minimum net capital requirement of \$5,000. # **4. CONCENTRATION OF CUSTOMER REVENUES** For the year ended December 31, 2023, two clients accounted for 100% of the Company's revenue. ### **5. RELATED PARTY TRANSACTIONS** The Company has an Expense Sha1ing Agreement (the "Agreement") in place with the Parent whereby the Parent pays ce1tain expenses, such as occupancy, supplies, equipment and salaries, on behalf of the Company for which the Parent is reimbursed or makes an allowance for treatment of such funds as noncash capital contribution. These expenses are allocated to the company in accordance to the Agreement and the apportionment is based on reasonable allocation agreed by the patties. As of December 31, 2023, the Company allocated \$216,036. As of December 31 , 2023, amounts not yet reimbursed have been included in Accounts Payable to Related Patties on the accompanying statement of financial condition, in the amount of \$18,003. {7}------------------------------------------------ ## **JEGI, LLC (A WHOLLY OWNED SUBSIDIARY OF THE JORDAN, EDMISTON GROUP, INC.) NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2023** ### **6. COMMITMENTS AND CONTINGENCIES** ### Litigation The Company may be involved in legal proceedings in the ordina1y course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Currently, the Company is not involved in any legal proceedings which are not in the ordina1y course of business. ### **7. SUBSEQUENT EVENTS** The Company evaluated events occmTing between the end of its fiscal year, December 31, 2023, and Febma1y 22, 2024, when the financial statements were issued. All subsequent events requiring recognition as of the auditor's rep01t date, have been incorporated into these financial statements herein. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.