# COURTLANDT SECURITIES CORPORATION X-17A-5 (2020-03-10) — Broker-dealer annual report - Company: COURTLANDT SECURITIES CORPORATION - Form: X-17A-5 - Filed: 2020-03-10 - Period: 2019-12-31 - Accession: 0001339172-20-000002 - CIK: 1339172 - File #: 8-67081 - Material weakness: No - Auditor: Joseph Yafeh - Auditor location: Los Angeles, CA - Contact: Michael Cruz - Phone: 949-251-6901 - Signed by: Michael L. Cruz (President) Original filing: https://www.sec.gov/Archives/edgar/data/1339172/000133917220000002/public.pdf --- {0}------------------------------------------------ ## **COURTLANDT SECURITIES CORPORATION** **Report Pursuant to Rule 17a-5 (d)** **Financial Statements** **For the Year Ended December 31, 2019** This report is deemed PUBLIC in accordance with Rule 17a-5(e)(3) {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ## ANNUAL AUDITED REPORT FORM X-17A-5 PART III OMB APPROVAL OMB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours per response .. . . . . . . 12.00 ## SEC FILE NUMBER 8-67081 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 01/01/2019 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF BROKER-DEALER: Courtlandt Securities Corp. OFFICIAL USE ONLY ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) FIRM I.D. NO. 18218 McDurmott, Suite A, Irvine, CA. 92614 (No. and Street) (City) (Zip Code) (State) NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT Michael L. Cruz. 949-251-6901 (Area Code - Telephone Number) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report\* Joseph Yafeh, CPA (Name - if individual, state last, first, middle name) CA 90064 11300 W. Olympic Blvd., Ste 875 Los Angeles (City) (Zip Code) (Address) (State) 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 from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(2)(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 OMB control number. {2}------------------------------------------------ #### OATH OR AFFIRMATION ### I. Michael L. Cruz , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of Courtlandt Securities Corp. . as , 20 19 are true and correct. I further swear (or affirm) that President Signature Title of December 31, neither the company nor any partner, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: Notary Public This report \*\* contains (check all applicable boxes): - (a) Facing Page. - (b) Statement of Financial Condition. - (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). - (d) Statement of Changes in Financial Condition. - (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - (g) Computation of Net Capital. - (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. - (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - (j) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of consolidation. - (1) An Oath or Affirmation. - (m) A copy of the SIPC Supplemental Report. - (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. \*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). | A notary public or other officer completing this certificate
verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document. | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------| | State of California, County of
Subscribed and sworn to (or affirmed) before me
_ day of _ March | oronge
michael L. Cruz | | proved to me on the basis of satisfactory evidence to
be the person(s) who appeared before me.
Signature: | | ![](_page_2_Picture_25.jpeg) {3}------------------------------------------------ **Joseph Yafeh CPA, Inc.** *A Professional Accounting Corporation* PCAOB Registered # 3346 11300 W. Olympic Blvd., Suite 875 Los Angeles CA 90064 310-477-8150 ~ Fax 310-477-8152 ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Courtlandt Securities Corporation ### **Opinion on the Financial Statements** I have audited the accompanying statement of financial condition of Courtlandt Securities Corporation as of December 31, 2019, the related statement of income, statement of changes in shareholders' equity , and statement of changes in financial condition for the year then ended, and the related notes and schedules. In my opinion, the financial statements present fairly, in all material respects, the financial position of Courtlandt Securities Corporation as of December 31, 2019, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. ### **Basis for Opinion** These financial statements are the responsibility of Courtlandt Securities Corporation's management. My responsibility is to express an opinion on Courtlandt Securities Corporation's financial statements based on my audit. I am a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and am required to be independent with respect to Courtlandt Securities Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. I conducted my audit in accordance with the standards of the PCAOB. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. My audit included performing procedures to assess the risks of material misstatement of the financial statements, 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. My 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. I believe that my audit provides a reasonable basis for my opinion. ### **Auditor's Report on Supplemental Information** The supplemental information, consists of Schedules I, II & III, has been subjected to audit procedures performed in conjunction with the audit of Courtlandt Securities Corporation's financial statements. The supplemental information is the responsibility of Courtlandt Securities Corporation's management. My audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming my opinion on the supplemental information, I evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In my opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. I have served as Courtlandt Securities Corporation's auditor since 2007. Los Angeles, California March 9, 2020 {4}------------------------------------------------ ## **Courtlandt Securities Corporation Statement of Financial Condition December 31, 2019** ## **Assets** | Total Assets | \$
386,688 | |---------------------|---------------| | Other Assets | 443 | | Advances | 3,000 | | Accounts Receivable | 287,500 | | Cash | \$
95,745 | ## **Liabilities and Shareholder's Equity** | Liabilities
Accounts payable | | \$ | 168,384 | |----------------------------------------------|----|-----------|---------| | Total Liabilities | | | 168,384 | | Shareholder's Equity | | | | | Common stock, \$10 par value, 100,000 shares | | | | | authorized; 1,000 shares outstanding | \$ | 10,000 | | | Paid in capital | | 357,866 | | | Retained (deficit) | | (149,562) | | | | | | | # **Total Liabilities and Shareholder's Equity** \$ 386,688 See Accompanying Notes to Financial Statements {5}------------------------------------------------ ## **Courtlandt Securities Corporation Notes to Financial Statements December 31, 2019** ### **Note 1 - Organization and Nature of Business** Courtlandt Securities Corporation (the Company) is a California corporation incorporated on June 7, 2005 and approved by the NASD in February 2006. The company is a registered broker-dealer with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). The Company is a General Securities Broker/Dealer. The Company does not hold customer funds or securities. ## **Note 2 – Significant Accounting Policies** . **Basis of Presentation** – The Company is currently approved to conduct several types of businesses. At this time, the Company does not conduct any introductory business and does not have a Clearing Agreement. The Company does not hold customer funds and/or securities. The Company is licensed to conduct the following types of business as a securities broker-dealer, which comprises several classes of services, including: - Broker retailing corporate equity securities over-the-counter - Broker selling corporate debt securities - Underwriter or selling group participant -corporate securities other than mutual funds - Mutual fund retailer by application or through clearing agent - U.S. government securities broker - Broker or dealer selling variable life insurance or annuities - Solicitor of time deposits in a financial institution - Real estate syndicator - Broker or dealer selling oil and gas interests - Broker or dealer selling tax shelters or limited partnerships in primary distributions - Non-exchange member arranging for transaction in listed securities by exchange member - Private placements of securities Under its membership agreement with FINRA the Company is approved to conduct several types of business, including acting as an Introducing Broker on a fully disclosed basis, where they do not execute or clear securities transactions for customers. During the current period, the Company has not conducted any introductory business, and therefore, has operated pursuant to Rule 15c3(k)(2)(i), "Special Account for the Exclusive Benefit of Customers" maintained. Accordingly, the Company is exempt from the requirement of Rule 15c3-3 under the Securities Exchange Act of 1934 pertaining to the possession or control of customer assets and reserve requirements. **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 could differ from those estimates. **ASC 606 - Revenue Recognition** – Based upon the income reported, Commissions earned from the sale of mutual funds, investment company shares and direct participation programs represent the major portion of the business, while Other Fees, including Marketing & Due Diligence fees represent the second largest Courtlandt Securities Corp. PUBLIC December 31, 2019 {6}------------------------------------------------ ## **Courtland Securities Corporation Notes to Financial Statements December 31, 2019** portion. Mutual fund trailers comprise a small portion of the business. For all income categories, Courtlandt Securities Corp. ("CSC") considers revenue to be generated when the BD satisfies a performance obligation. Revenue is considered earned when a) Evidence of an arrangement exists; b) The Fee is fixed or able to be determinable; c) Performance has occurred; and d) Collectability is reasonably assured. Revenue is recorded when payment is received and deposited. **Income Taxes** – The amount of current and deferred taxes payable or refundable is recognized as of the date of the financial statements, utilizing currently enacted tax laws and rates. Deferred tax expenses or benefits are recognized in the financial statements for the changes in deferred tax liabilities or assets between years. The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken by the Company in its Federal and State organization tax returns are more likely than not to be sustained upon examination. The Company is subject to examinations by U.S. Federal and State tax authorities from 2016 to the present, generally for three years after they are filed. **Depreciation –** Depreciation is provided on a straight-line basis using estimated useful lives of five to ten years. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. **Statement of Changes in Financial Condition –** The Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months that are not held for sale in the ordinary course of business. ## **Note 3 – Income Taxes** The Company, with consent of its shareholder, has elected to be an S corporation and accordingly has its income taxes under Section 1372 of the Internal Revenue code, which provides that in lieu of corporation income taxes, the stockholder is taxed on the Company's taxable income. Therefore, no provision of liability for Federal income taxes is included in these financial statements. The state of California has similar regulations, although there exists a provision for a minimum franchise tax and a tax rate of 1.5% over the minimum tax of \$800. {7}------------------------------------------------ ## **Courtland Securities Corporation Notes to Financial Statements December 31, 2019** ### **Note 4 – New Accounting Pronouncements - ASU 2016.2 Operating Leases** In February, 2016, the FASB issued ASU 2016-02, Leases, and several amendments (collectively "ASU 2016- 2"), which requires lessees to recognize assets and liabilities arising from most operating leases on the statement of financial condition. The Company is not party to any lease agreements. As such, this new accounting pronouncement is not applicable to the Company in the current year. ### **Note 5 – Subsequent Events** Management has reviewed the results of operations for the period of time from its year end December 31, 2019 through March 9, 2020, the date the financial statements were available to be issued, and has determined that no adjustments are necessary to the amounts reported in the accompanying combined financial statements, nor have any subsequent events occurred, the nature of which would require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.