# GOODBODY SECURITIES INC X-17A-5 (2022-02-28) — Broker-dealer annual report

- Company: GOODBODY SECURITIES INC
- Form: X-17A-5
- Filed: 2022-02-28
- Period: 2021-12-31
- Accession: 0001328730-22-000001
- CIK: 1328730
- File #: 8-66955
- Type: Broker-dealer
- Material weakness: No
- Auditor: DeMarco Sciaccotta Wilkens & Dunleavy, LLP
- Auditor location: Frankfort, IL
- Contact: Paul Curtin
- Phone: 353 16419261
- Signed by: Stephen Donovan (Director)

Original filing: https://www.sec.gov/Archives/edgar/data/1328730/000132873022000001/Goodbody2021Short.pdf

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:t GlNA DRUM ;v1ERRION ROAD. \_.\_\_SBJUDGE. DUBLIN 4. ,., l\iblk for chc Cc1unry ''"'I Cicyof Dublin, · lrcl.rnd. CommissioncJ for Lire.

## GOODBOOY SECURITIES NCORPORA TED

STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

DECEMBER 31, 2021

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|                                                                                                                                                                                        | UNITED Sf ATES                                                                                            |                                              |                                                           |                                            |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|----------------------------------------------|-----------------------------------------------------------|--------------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION                                                                                                                                                     |                                                                                                           |                                              | OMB APPROVAL<br>OMB Number:<br>3235·0123                  |                                            |
| lWashington, D.C. 20549<br>2                                                                                                                                                           |                                                                                                           |                                              | Expires:<br>October 31, 2023<br>Estimated av-erage burden |                                            |
|                                                                                                                                                                                        |                                                                                                           |                                              | hovts per response                                        | 12.00                                      |
| ANNUAL AUDITED REPORT<br>FORM X-17A-5<br>PART Ill                                                                                                                                      |                                                                                                           |                                              |                                                           | SEC FILE NUMBER                            |
|                                                                                                                                                                                        |                                                                                                           |                                              |                                                           | 8-66955                                    |
|                                                                                                                                                                                        | FACING PAGE                                                                                               |                                              |                                                           |                                            |
|                                                                                                                                                                                        | Information Required Pursuant to Rules 17a·S, 17a-12, and 18a-7 under the Securities EKchange Act of 1934 |                                              |                                                           |                                            |
| REPORT FOR THE PERIOD BEGINNING                                                                                                                                                        | ___<br>Ol /01/20 21 AND ENOING<br>MM/DDiYY                                                                | -=12,_/=31::&./=20::::2=1'------<br>MM/00/YY |                                                           |                                            |
|                                                                                                                                                                                        | A. REGISTRANT IDENTIFICATION                                                                              |                                              |                                                           |                                            |
| !BJ Broker-deal er<br>OSecurity-based swap dealer<br>D Check here If respondent is also an OTC derivatives dealer<br>ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) |                                                                                                           | OMajor security-based swap participant       |                                                           |                                            |
| Ballsbridge Park, Sallsbridge                                                                                                                                                          |                                                                                                           |                                              |                                                           |                                            |
|                                                                                                                                                                                        |                                                                                                           |                                              |                                                           |                                            |
| Dublin                                                                                                                                                                                 | (No. and Street)<br>Dublin 4                                                                              |                                              | Ireland                                                   |                                            |
| (City)                                                                                                                                                                                 | (State)                                                                                                   |                                              | (Zip Code)                                                |                                            |
| PERSON TO CONTACT WITH REGARD TO THIS FILING<br>Paul Curtin  353 16419261                                                                                                              |                                                                                                           |                                              | pa ul.b.c u rt in@good body .ie                           |                                            |
|                                                                                                                                                                                        | jArl't (.od<t -ltlephone Numbtt)                                                                          |                                              |                                                           |                                            |
|                                                                                                                                                                                        | B. ACCOUNTANT IDENTIFICATION                                                                              |                                              |                                                           |                                            |
| INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report•                                                                                                               |                                                                                                           |                                              |                                                           |                                            |
| DeMarco, Sciaccotta, Wilkens & Dunleavy, LLP                                                                                                                                           |                                                                                                           |                                              |                                                           |                                            |
|                                                                                                                                                                                        | (Name - if individual, state last, first, middle name)                                                    |                                              |                                                           |                                            |
| 20646 Abbey Woods Ct N, Suite 201                                                                                                                                                      | Frankfort                                                                                                 | II                                           |                                                           | 60423                                      |
| (Address)                                                                                                                                                                              | (City)                                                                                                    | (St.,tej                                     |                                                           | (Zip Code)                                 |
| 12/21/2010                                                                                                                                                                             |                                                                                                           |                                              |                                                           | 5376                                       |
| (Date of Registration with PCAOB)(if appllc;ible]                                                                                                                                      |                                                                                                           |                                              |                                                           | (PCAOB Resi1tratlon Number, if applicable) |
|                                                                                                                                                                                        | FOil OFFICIAL USE (JNL Y                                                                                  |                                              |                                                           |                                            |

• Claims for exemption irom the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances rel!ed on as the basis of the exemption. See 17 CFR 240.l 7a-S(e)(l)(U), if applicable. Persons who are to respond to the collection of information contall'led in this form are not required *to* respond unless 1he form displays a currently valid OMB control number.

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#### OATH OR AFFIRMATION

I, Stephen Donovan, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Goodbody Securities, Inc., as of December 31, 2021, is true and correct. I further swear (or affirm) that neither the company norr any partner, officer, dir ector, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer.

IOirector

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This filing\*\* contains (check all applicable boxes):

- !81 (a) Statement of financial condition.
- ~ (b) Notes to consolidated statement of financial condition.
- 0 (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§ 210.1-02 of Regulation S-X).
- 0 (d) Statement of cash flows.
- 0 (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- 0 (f) Statement of changes In liabilities subordinated to claims of creditors.
- 0 (g) Notes to consolidated financial statements.
- 0 (h) Computation of net capital under 17 CFR 240.15c3-1or17 CFR 240.lSa-l, as applicable.
- D (i) Computation of tangible net worth under 17 CFR 240.lSa-2.
- 0 (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- 0 (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit 8 to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.lBa-4, as applicable.
- 0 (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3.
- 0 (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3.
- 0 {n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3· 3(p)(2) or 17 CFR 240.18a-4, as applicable.
- 0 (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capi tal or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240. lBa-ll, or 17 CFR 240.18a·2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.lBa-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.
- i25i (qi Oath or affirmation in accordance with 17 CFR 240.l 7a-5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable.
- D (r) Compliance report in accordance with 17 CFR 240.17a-5or17 CFR 240.lSa-7, as applicable.
- 0 (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa· 7, as applicable.
- 181 (t) Independent public accountant's report based on an examination of the statement of financial condition.
- 0 (u) Independent public accounlanl'!> report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- 0 (v) Independent public ac1..uuntant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5or17 CFR 240.lSa-7, as applicable.
- 0 (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable.
- n (l() Supplemental reports on applying agreed upon procedures, in accordance with *17* CFR 240.15c3-lt: ur 17 CFR 240.17a-12, as applicable.
- 0 {y) Report descfibing 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).
- 0 (z) Other:

\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.l 7a-S(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.

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# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FlRM

Board of Directors Goodbody Securities Incorporated

# Opinion on the Financial Statement

We have audited the accompanying statement of financial condition of Goodbody Securities Incorporated (the "Company") as of December 31, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Goodbody Securities Incorporated 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 the Company's fmancial 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 perfonning procedures to assess the risks of material mis.statement 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 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 our opinion.

We have served as Goodbody Securities lncorporated's auditor since 2012.

Frankfort, IUinois February 22, 2022

> Phone:708.489.1680 Fax:847.750.0490 I dscpagroup.com 20646 Abbey Woods Ct N, Suite 201 I Frankfort, IL 60423

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TABLE OF CONTENTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

STATEMENT OF FINANCIAL CONDITION

NOTES TO THE STATEMENT OF FINANCIAL CONDITION

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# STATEMENT OF FINANCIAL CONDITION

As of 31<sup>51</sup>December 2021

|                                                           | \$         |
|-----------------------------------------------------------|------------|
| Assets                                                    |            |
| Cash and cash equivalents                                 | 2,345,961  |
| Accounts Receivable Customer                              | 1,278,290  |
| Receivable to related party                               | 84,238     |
| Prepayments                                               | 9,129      |
| Total Assets                                              | 3,717,618  |
|                                                           |            |
| Liabilities                                               |            |
| Fail to receive                                           | 1,278,290  |
| Accounts payable and other accrued expenses               | 29,742     |
| Taxes Payable                                             | 378        |
| Total Liabilities                                         | 1,308,410  |
|                                                           |            |
| Stockholder's Equity                                      |            |
| Common stock, par value \$0.01. Authoril'.ed 3,000 shares |            |
| issued and outstanding 1 share at \$0.01 per share        |            |
| Additional paid in capital                                | 2,057,000  |
| Retained earnings                                         | 352,208    |
| Total stockholder's equity                                | 2,409,,208 |
|                                                           |            |
| Total Liabilities and Stockholder's Equity                | 3,717,618  |
|                                                           |            |

The accompanying notes are an integral part of these financial statements.

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• I

## Notes to Financial Statements December 31st, 2021

# 1. General Information and Summary of Significant Accounting Policies (continued)

## (b) Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income irn the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

### (c) Fair Value of Financial Assets and Liabilities

The majority of the Company's financial assets and liabilities are recorded at amounts that approximate fair value. Such assets and liabilities include cash, accounts receivable customer, fail to receive and accrued expenses.

### 2. Income Taxes

Provision for income taxes for the years ended December 31s1 , 2021 includes the following amounts (the Company reports under the accrual method for tax purposes):

| Current Taxes                    | \$    |
|----------------------------------|-------|
| Federal                          | 4,553 |
| City                             | 25    |
| State                            | 25    |
| Total Current                    | 4,603 |
| Deferred Tax                     | 0     |
| Total provision for income taxes | 4,603 |

The Company"s effective income tax rate is higher than what would be expected if the federal statutory rate were applied to income before income taxes primarily because of certain expenses for financial reporting purposes that are not deductible for tax purposes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The major temporary differences that give rise to the deferred tax assets are due !o start-up and organizational costs.

A valuation allowance for deferred tax assets was not considered necessary at December 31•<sup>1</sup> , 2021. Management believes it is more likely than not that the Company will fully realize the total deferred income tax asset as of December 31 , 2021 , based upon its l'.!Xpi;!cted future levels of taxable income. The Company is no longer subject to examination by tax authorities for federal, state or local income taxes for periodls before 2017.

### 3. Cash and Cash equivalents

The Company considers all highly liquid instruments with original maturities of 3 months or less at the date of purchase to be cash equivalents.

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#### Notes to Financial Statements December 315 \ 2021

## 4. Net Capital

The Company is subject to the Securities and Exchange Commission (SEC) Uniform Net Capital Rule 15c3-1 which requires the maintenance of minimum net capital as defined. At December 31s1 , 2021, the Company had net capital, as defined by the SEC Uniform Net Capital Rule 15c3-1, of\$2.315,841 which was \$2,065,841 in excess of its required net capital of \$250,000.

## 5. Related party transactions

GBS charges a fee for corporate overhead services. Service fee income is charged to GBS. For the year ended December 31, 2021, corporate overhead experlses and service fee income were \$167,845 and \$278,933 respectively. The Company has an agreement with GBS to distribute independent third-party research produced by GBS to the Company's US institutional clients. The Company receives a research services fee from GBS for providing this service. For the year ended December 31st, 2021, total research services fee income from GBS was \$46,233.

At December 3151 2021, the Company had a net receivable from GBS of \$84,238.

## 6. Commitments and Contingencies

There were no commitments or contingencies at the year end.

## 7. Risk and Uncertainties

### Customer Transactions

In the normal course of business, the Company effects transactions on behalf of customers on delivery versus payment basis. If these transactions do not settle due to failure to perform by either the customer or the counterparty, the Company may be obligated to discharge the obligation of the nonperforming party and, as a result, may incur a loss if the market value of the securities is diffelient from the contract amounts. The risk of loss to the Company is normally limited to differences in market values of the securities compared to their contract amounts. At December 31,2021 , there was one failed trade.

### Off-Balance Sheet Risk

In the normal course of business, the Company's customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose the Company to off-balance-sheet risk in the event the customer or other broker i:s unable lo fulfill its contracted obligations and the Company has to purchase or sell the financial instrument underlying the contract at a loss.

The Company acts as an agent for institutional customers in the purchase and sale of foreign securities. The Company executes and clears all of these foreign trades through a contractually obligated foreign affiliate. These trndcs are settled on a basis of eith£:r delivery or r"~1,;t!ipl versus payment. In the normal course of business, the Company's activities involve the execution and settlement of various customer securities transactions. These activities may expose the Company to off-balance sheet risk in the event a counterparty is unable to fulfill its contracted obligations and the Company has to purchase or sell the financial instrument underlying the contract at a toss. The Company monitors the credit standing of all counterparties with which it conducts business. All open transactions at December 31 , 2021 settled with no resultant Joss being incurred by the Company.

## Concentration of Credit Risk

The Company's cash is on deposit at one financial institution and the balances ait times may exceed the federally insured limit. The Company believes it is not exposed to any significant credit risk to cash.

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# **8. Subsequent Event**

The Company has evaluated subsequent events occurring after the statement of financial condition date December 31, 2021, through the date these financial statements were issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which would require disclosure or adjustment to the financial statements.


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.