# PACER FINANCIAL, INC. X-17A-5 (2024-02-06) — Broker-dealer annual report - Company: PACER FINANCIAL, INC. - Form: X-17A-5 - Filed: 2024-02-06 - Period: 2023-12-31 - Accession: 0001337443-24-000001 - CIK: 1337443 - File #: 8-67061 - Type: Broker-dealer - Material weakness: No - Auditor: Sanville & Company - Auditor location: Abington, PA - Contact: John Miller - Phone: 917-620-6006 - Signed by: Joe M. Thomson (Principal Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1337443/000133744324000001/public.pdf --- {0}------------------------------------------------ **Pacer Financial, Inc. Financial Statement December 31, 2023** {1}------------------------------------------------ | ANNUAL AUDITED FOCUS REPORT FACING PAGE
1-2
_________________________________________________________________________________________ | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---| | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON THE FINANCIAL STATEMENT
_________________________________________________________________________________________ | 3 | | FINANCIAL STATEMENT | | | Statement of Financial Condition
| 4 | | | | {2}------------------------------------------------ UNITED STATES SEClJRfflES AND EXCHANGE COMMISSION Washington, D.C. 20549 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00 # ANNUAL AUDITED REPORT **FORM** X-17 **A-5 PART** UI | SEC FILE NUMBER | |-----------------| | 8-67061 | FACING PAGE **Information Required** of Brokers and Dealers Pursuant to Section 17 of the **Securities Exchange** Act of 1934 and Rule 17a-5 Thereunder | REPORT FOR THE PERIOD BEGINNING 01/01/23 | | | -----------
AND ENDING 12/31/23 | | | |-------------------------------------------------------------------------------------------|---------------------------------------------------------------------|---------|------------------------------------|--|--| | | MM/DDIYY | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF BROKER-DEALER: Pacer Financial, Inc. | | | OFFICIAL USE ONLY | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | | | 500 Chesterfield Parkway | | | | | | | | (No. and Street) | | | | | | Malvern | 19355
PA | | | | | | (City) | (State) | | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Joe M. Thomson | | | 610-644-8100 | | | | | | | (Arca Code
Telephone Number) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | | Sanville & Company | | | | | | | | ifindiridual. slate last. j)rsl. middle name)
(Name | | | | | | 1514 Old York Road | Abington | PA | 19001 | | | | (Address) | (City) | (State) | (Zip Code) | | | | CHECK ONE: | | | | | | | ✓ !certified Public Accountant | | | | | | | Public Accountant | | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | | | | | | *\*Claims for exemption Ji-om the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a stmemel1f <4fc.1c1s and circumstances relied on as the basis.for the exemption. See Section 240. 17a-5(e)(2)* > Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number. SEC 1410 (11-05) {3}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, Joe M. Thomson | , swear (or affirm) that, to the best of | |--------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | ----------------------
Pacer Financial, Inc. | my kn ow ledge and belief th e accompanying financial statement and supporting schedules pertaining to the firm of
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as | | of December 31 | -
, 20_2_3 ___ , are true and correct. I further swear (or affirm) that | | | neithe r the company no r any partner, proprietor, principal officer or director has any proprietary interest in any account | | classified so le ly as th at of a customer, except as fol lows: | | | | | | | | | Commonwealth of Pennsylvania • Notary
a
Ertc L Johnson, Notary Public
Chester County | | | My Commission Expires December 6, 2027
Commission Number 1238471 | | | | Principal Executive Officer | | | Title | | | | | Notary Public | | | This report ** contains (check all applicable boxes): | | | 0 (a) Fac
ing Page. | | | 0 (b) Statement of Financial Condition. | D (c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement | | of Com | prehensive Income (as defined in §210.1-02 of Regulation S-X). | | B (d) Statement of Changes in Financial Condition. | | | D (fl Statement of Changes in Liabilities Subordinated to Claims of Creditors. | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | | | § (g) Computation of Net Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule l 5c3-3. | | | (i) | In format ion Re lating to the Possession or Control Requirements Under Rule I 5c3-3. | | D U) A Reconciliation | , including appropriate explanation of the Computation of Net Capital Under Rule I 5c3-
I and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3. | | | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | conso lidation . | | | An Oath or Affirmation.
(I) | | | (m) A copy of the SIPC Supplemental Report. | (n) A report de sc ribing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | | | | | *':' For conditions ofco11/identia/ treatment of certain portions of this.filing, see section 240. !7a-5(e)(3). | {4}------------------------------------------------ # **Pacer Financial, Inc. Statement of Financial Condition December 31, 2023** # **Assets** | Cash and cash equivalents
Commissions and fees receivable
Due from affiliate
Other assets | \$
3,321,360
1,270
254,528
837 | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------| | Total assets | \$
3,577,995 | | Liabilities and Stockholders' Equity | | | Liabilities | | | Accrued expenses | \$
16,164 | | Stockholders' Equity | | | Common stock, no par value, Class A voting, -1,000 shares
authorized, 1,000 issued and outstanding
Common stock, no par value, Class B non-voting, -100,000 shares | 100,000 | | authorized, 100,000 issued and outstanding | - | | Additional paid-in capital
Accumulated deficit | 13,659,870
(10,198,039) | | Total stockholders' equity | 3,561,831 | | Total liabilities and stockholders' equity | \$
3,577,995 | The accompanying notes are an integral part of this financial statement. {5}------------------------------------------------ #### **1. Organization** Pacer Financial, Inc. ("The Company") is a registered broker dealer with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company is incorporated under the laws of the Commonwealth of Pennsylvania. The Company, like other broker dealers and investment advisors, is directly affected by general economics and market conditions, including fluctuations in volume and price level of securities, changes in interest rates and securities brokerage services, all of which have an impact on the Company's liquidity. ## **2. Summary of Significant Accounting Policies** #### *The following are the significant accounting policies followed by the Company:* *Revenue –* In accordance with ASC 606, revenue from the sale of mutual funds, variable annuities and exchange traded funds is recognized when it is earned. Marketing fee revenue is recognized when earned, based on the terms of the underlying agreement, when the Company's performance obligations have been fulfilled. *Concentration of credit risks* - The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Management believes the Company is not exposed to any significant credit risk related to cash. *Cash and cash equivalents -* The Company includes as cash and cash equivalents amounts invested in money market mutual funds. *Income taxes* – The Company has elected to be taxed under the provision of Subchapter S of the Internal Revenue Code and similar state provisions. Under these provisions, the Company does not pay federal or state corporate income taxes on its taxable income. Accordingly, no provision has been made for federal or state income tax for the year ended December 31, 2023, in the accompanying financial statement. The Company recognizes and discloses uncertain tax positions in accordance with accounting principles generally accepted in the United States of America (GAAP). As of, and during the year ended December 31, 2023 the Company did not have liability for unrecognized tax benefits. The Company is no longer subject to examination by federal and state taxing authorities prior to 2020. *Fair value -* The Company utilizes various methods to measure the fair value of most of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows: *Level 1.* Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access. *Level 2.* Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data. {6}------------------------------------------------ ## **2. Summary of Significant Accounting Policies (Continued)** *Level 3.* Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company's own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments in money market funds, are valued at the money market fund's net asset value per share. The following table summarizes the valuation of the Company's investments by the above fair value hierarchy levels as of December 31, 2023: | Securities owned: | Level 1 | Level 2 | Level 3 | |---------------------------------|-----------------|---------|---------| | Money market funds (included in | | | | | cash and cash equivalents) | \$
1,878,534 | \$
- | \$
- | *Use of Estimates* - The preparation of financial statements in conformity with generally accepted accounting principles 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 reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates and assumptions. *Subsequent events* - Management has evaluated the impact of all subsequent events through February 1, 2024, the date the financial statement was available to be issued (See Note 5). #### **3. Net Capital Requirements** The Company is a member of the FINRA and is subject to the SEC Uniform Net Capital Rule 15c3-1. This Rule requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. {7}------------------------------------------------ #### **3. Net Capital Requirements (Continued)** At December 31, 2023, the Company's net capital was \$3,267,625 which was \$3,262,625 in excess of its minimum requirement of \$5,000. The Company's net capital ratio was 0.005 to 1. #### **4. Liabilities Subordinated to Claims of General Creditors** There were two borrowings under subordination agreements that were fully repaid during the year ended December 31, 2023, upon the approval of FINRA. The first was a \$200,000 Subordinated Loan Agreement bearing interest at 6% and the second borrowing was a \$400,000 Subordinated Loan Agreement bearing interest at 5%. The borrowings were funded by one of the Company's stockholders. Interest expense for the year ended December 31, 2023 under such borrowings was \$23,822. #### **5. Subsequent Event** The Company distributed \$4,500,000 to the stockholders in January 2024. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.