# GLOBAL ALLIANCE SECURITIES LLC X-17A-5 (2020-03-02) — Broker-dealer annual report - Company: GLOBAL ALLIANCE SECURITIES LLC - Form: X-17A-5 - Filed: 2020-03-02 - Period: 2019-12-31 - Accession: 0001393905-20-000062 - CIK: 1571014 - File #: 8-69244 - Material weakness: Yes - Auditor: Berkower LLC - Auditor location: Iselin, NJ - Contact: John P. O'Shea - Phone: 212-878-6500 - Signed by: John P. O'Shea (Executive Chairman) Original filing: https://www.sec.gov/Archives/edgar/data/1571014/000139390520000062/gas_full7.pdf --- {0}------------------------------------------------ | UNITED STATES | | | | |------------------------------------|--|--|--| | SECURITIES AND EXCHANGE COMMISSION | | | | | Washington, D.C. 20549 | | | | | OMB APPROVAL | | | | | |-------------------------------------|-----------------|--|--|--| | 3235-0123
OMB Number. | | | | | | Expires: | August 31, 2020 | | | | | Estimated avarage burcen | | | | | | - 12.00
haus der response. - - - | | | | | sec file number 8-69244 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the | REPORT FOR THE PERIOD BEGINNING | 1/1/2019
MMDD/YY | AND ENDING | | 12/31/2019
MMDDAYY | | | |--------------------------------------------------------------------------|--------------------------------------------------------|------------|-------------------|--------------------------------|--|--| | A. REGISTRANT IDENTIFICATION | | | | | | | | GLOBAL ALLIANCE SECURITIES, LLC
NAME OF BROKER-DEALER: | | | OFFICIAL USE ONLY | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | FIRM L.D. NO. | | | | 2464 DARTS COVE WAY | | | | | | | | | (No. and Street) | | | | | | | Charleston (MT Pleasant)
સ્ટ | | | 29466 | | | | | (City) | (State) | | (Co Code) | | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS LEPORT | | | | | | | | John P O'Shea | | | 212-878-6532 | | | | | | | | | (Area Code - Telephone Number) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT wasse opinion is contained on this Report® | | | | | | | | | Berkower LLC | | | | | | | | (Name - if individual, state last, first, middle came) | | | | | | | \$17 Route One | Iselin | | NI | 08810 | | | | (ACGES) | (CB) | | (Suze) | (Zip Code) | | | | CHECK ONE: | | | | | | | | x
Corifical Public Accountant | | | | | | | | Public Accountant | | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | \* Claims for cleagues from the regirement the annul report be covered by the opinion of an indic accounted and be supported by a statement of formationse relied on as the bas | | Potential persons who are to respond to the collection of information | | | |------------------|-----------------------------------------------------------------------|--|--| | | contained in this form are not required to respond unless the form | | | | SEC 1410 (06-02) | displays a currently valld OMB control mumber. | | | {1}------------------------------------------------ # NOLLVANIANA AND ALVO ് സ്വാത്തിന്റെ ജനസ്സം സ്വാമന്ത്രം മാത്രമാറ്റ പ്രാമത്തിലെ സ്വീകരിച്ചത്. സ്ഥിത സംസ്ഥിത സംസ്ഥിത സംസ്ഥിതമ്പ് സ സ്ഥിച്ചി സ്വന്തമാക്കുന്നത് ഈ പ്രാമത്തിന്റെ താരത്തിന്റെ സമ്പോൾ പ്രശ 0 :shellof sex sex post a the of a constance, carpes as follower - ![](_page_1_Figure_3.jpeg) - g - ಕ್ರಿ ಲ್ಲೂ 1----------------------------------------------------------------------------------------------------------------------------------------------------------------------- - - e As cash on affirmations. - (૫) 4 copy of the Securities Investor Companies (SIPC) supplanents) ispart - (૫) ಾರ್ಯಕ್ಕೆ ಒಂದುರೆಯುತ್ತಿ - �� 103 104 the for the results as a mill and for and more of reverses of reveally of the propose {2}------------------------------------------------ # Global Alliance Securities LLC CONTENTS | | 1m | |------------------------------------------------------------|----| | Report of Independent Registered Public Accounting Firm l | | | | | | Financial Statements | | | Statement of Financial Condition � 2 | | | | | | Notes to Financial Statements • 3-7 | | {3}------------------------------------------------ # Global Alliance Securities lLLC FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION (Public Per Rule 17a-5(e)(3» For the Year Ended December 31, 2019 {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 517 Roste One, Suite 4103 lseiln, NJ 08830 ଓ (732) 781-2712 ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of Giobal Alliance Securities LLC ### Opinion on the Financial Statement We have audited the accompanying statement of Tinancial condition of Global Alliance Securities LLC (the "Company") as of December 31, 2019 and the related notes (collectively referred to as the "Financial Statement"). In our opinion, the Financel Statement presents tainy, in all material respects, the linancial position of the Company as of December 31, 2019 In corformity with accounting principles generally accepted in the United States of America. ### Basis for Opinion This Financial Statement is the responsibility of the Company's menagement. Our responsibility is to express an opinion on the Company's Financial 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. lederal 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 traud. 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 hcluded examining, on a lest basis, evidence regeraing 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 overal 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 2018. Delkovar Dic Berkower U.C. lselin, New Jersey March 1, 2020 Mlami . Los Angeles . Cayman klands {5}------------------------------------------------ # GLOBAL ALLIANCE SECURITIES LLC # STATEMENT OF FINANCIAL CONDITION # DECEMBER 31, 2019 # ASSETS | Cash | \$ 458,105 | |-----------------------------|------------| | Property and equipment, net | 303 | | Accounts receivable | 37,842 | | Other assets | 17,492 | | Total Assets | \$ 513,742 | # LIABILITIES AND MEMBERS' EQUITY | Accounts payable and accued expenses | S | 7,805 | |---------------------------------------|---------|------------| | Members' equity | 505,937 | | | Total Liabilities and Members' Equity | | \$ 513,742 | The accompanying notes are an integral part of these financial statements. 2 | Page {6}------------------------------------------------ ## GLOBAL ALUANCE SECURITIES LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 ### NOTE 1-0RGANIZATION AND NATURE OF THE BUSINESS Global Alliance Securities LLC (the "Company"), was organized 00 Iune 22, 2010 in the state of New York as a limited Ii:lbility �ompany, The Company filed for disrohmon and the dissolution was granted with New York State in Apri12019. The Company reorganized i.1 the State of South Carolina as a limited liability company in I8IJU8lY of2019. The Company began its OperatiODS as a broker-dealer in August of 2014. The Company is a broker-dealer registered with the Securities and Exchange ConunissioD (SEC) and is a member of the Financial Industry Regulatory Aulhl)rity, Inc. (FINRA) and the Securities Investors Protectioo Corp ("SIPC"). The Company provides three types of services. They are: cbaperoning services to foreign broker-dealcllI pursuant to SEC Rule 15a-6; private placement services to foreign investors who seek to enter USICS's EB-5 Immigrant investor program; merger and acquisitions terminated services to corporate clients. The term of the Company shall contirme in perpetllity, unle!t. sooner in acc:ordance with the provisions of its operating agreement # NOTE 2- SIGNIFICANT ACCOUNTING POLICIES ### Basis of Presentation The Company prepares its financial statements on an accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. ### Revenue R�ognitioo During the year ended December 31, 2019, the Company had two sources of revenue. The Company derived 97.6010 of its 2019 revenues from its 15a-6 Chaperoning services busincss. The Company also derived fees from the sourcing, placement of regulation 0 private placements for participants in the users EB·5 program. Effective Janwuy 1,2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customelll ('Topic 606"). This revenue recognition guidance requires that an entity =ognize revenue to depict the trnnsfer of pron:\ised goods or services to customers in an amoUllt that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance requires an entity to follow a five steps model to (a) identify the c:ontract(s) with a customer, (b) identify the performance obligations in the contract, and (c) detennine the transaction price, (d) allocate the transaction price to the performance obligation, (e) =ognize revenue as the entity satisfies the perfoxmance obUgation. In determining the trnnsactioD price, an entity may include variable consideration only to extent that is probable when the that a significant reversal in the amount of cumulative revenue recognized would not occur uncertainty associated with the variable consideration is resolved. " .. \_,,--------\_. \_\_ .\_-\_.\_-------- ### Significant judgments Revenue from contracts with customers includes commissioo income and fees from investment banking. The recognition and measurement of revenue is based on the ass=ent of individual eontnlCt items. Significant judgement is required to determine whether performance obligations arc satisfied ata point in time or over time; how to allocate trnnsaction process where mu p eperfonnance obligatioDS are identified; wben'to =ognize revenue based on the appropriate measu.re oftbe Company's progress under the contract; and whether constraints on vari:lble considerations should be applied due to uncertain future events. ![](_page_6_Figure_11.jpeg) {7}------------------------------------------------ ### GLOBAL ALLIANCE SECURITIES LLC NOTES TO FINANCIAL STATEMENTS fOR THE YEAR ENDED DECEMBER 31, 2019 ### NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES - (CO:-ITINUED) ### Casb and Cash Equivalents The Company considers all highly liquid temporary cash investmllnts with an original maturity of three months or less when purchased to be cash equivalents. At December 31, 2019, the Company had no cash equivalents. Accounts receivable Accounts receivable includes conunission income due fonn clients. Accounts receivables are generally collected over a period of less than 45 days. Accounts receivable are assed frequently for collectabilily and an allowance is recognized (or doubtful accounts, if required. ### Allowance for Doubtfu1 Accounts The Company does not require collateral and establishes an allowance for doubtful accounts based on the Company's assessment of collectabilily. After concluding that an accounts receivable is not collectable, the Company will reduce the Gross receivable and the allowance for doubtful accounts. As of December 31,2019, receivable were considered fully coflectab1e and no allowance was estabfubed. ### Property and Equipment Property and equipment are valued at cost. Depreciation is expensed on a slr.light-Iine basis over the useful life of the asset over a 3-S-years. As ofDeeember 31, 2019, property and equipment bas a cost of \$1,5 12 and accumulated depreciation of\$I,209. 4jPiige--------\_. {8}------------------------------------------------ ### GLOBAL ALLIANCE SECURITIES LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. 2019 # NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) # Use of Estimates The preparation of financial statements in conformity with accolOting principles generaJ.ly accepted in the United States of America requires management to make estimates nod assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets nod liabilities at the date of the financial statements aod the reported amounts of revenues atId expenses during the reporting period. Actual results could differ from those estimates. ### Subsequent Events The Company evaluated subsequent evenrs for recognition and disclosure through the dale these [mantial statements issued. # NOTE 3 - NET CAPITAL REQUIREMEI'iTS The Company is subject to the SEC Unifonn Net Capital Rule (USEC Rule IScl.Jj, under which the Company is required to maintain a minimum net capital of S250,OOO and requires that the ratio of aggregate indebtedness to net capital, as defined, shall not exceed 15 to l. The Company's minimum nel capital is based upon SEC Rule ISa-6 which requires the COJlllany, a "chaperoning broker-dealef', to maintain a �um net capital of \$250,000. At December 31, 2019, the Company had net capital of \$450,300, which exceeded required net capital by \$200,300, and a total aggregate indebtedness of \$7,805. The Company 's !lggtegate indebtedness to net capital ratio was .0173 to 1 at December 31, 2019. The Company is'exempt from the provisions of SEC Rule 15c3-� under Securities Exchange Act of 1934, paragra in that the Company's activities are limited to those set forth in tile conditions for exemption appearing in ph (kX2Xi) and (k) (2) (li) of the Rule. # NOTE 4 -FULLY DISCLOSED CLEARING AGREEMENT The Company does not maintain a clearing agreement The Company utilizes the clearing carrying relationships of the foreigo broker-dealers for whom it is providing chaperoning services under SEC RIlle 15a-6 # NOTE S- RELATED PARTY TRANSACTIONS The Company has entered into a sub-lease agICCIIlent dated October 1,2013 with Westminster Securities COI'p. a related' entity under cornmon ownership. under wl:ich it is charged for office rent and miscellaneous office expenses. The rent expenses charged were \$7,312 for the year end December 31, 2019. The sub-lease agreement as terminated March 1,2019. The Company moved to a new South Carolina office and entered into an office rental agreement with 1he Company membets. The agreement is a month to month agreement with the payment of \$1,200 payable the ISUo of each month. The rental expense under this new agreement for the year ended December 2019 was 53,600. At December 3 J, 2019, the Company owed \$-0- to the members. ![](_page_8_Picture_13.jpeg) {9}------------------------------------------------ ### GLOBAL NOTES ALLIANCE SECURITIES LLC TO FINANCIAL ST ATEMENT§ FOR THE YEAR ENDED DECEMBER 31. 2018 'WI \_\_\_ ### NOTE 5 • RELATED PARTY TRANSACTIONS -CONTINUED Effective Janwuy I, 2019. the Company adopted Accounting StaDdards Codification 842, lease ("ASC 842"). The Company determines if an arrangement contains a lease at inception based on whether or not the Company has the right to control the asset during the eontrol period and other facts and circumstances. The Company does not have any leases that fell WIder the prol'isions of ASC 842 as of December 3 J, 2019. ### NOTE 7 -FAIR VALUE " Certain financial instruments are carried at cost on the balance sheet, which approximated fair value cue to their short term, highly liquid nature. These instruments include cash, aceounts receivable, accounts payable and accrued expenses. ### NOTE 8 - CONCENTRATIONS AND CREDIT RISK Financial instruments that subject the Company 10 credit risk consist principally of cash. The Company perfonns certain credit evaluation procedures and does not require collateral for financial instruments SUbject 10 credit risk. The Company maintains checking and money marlcet accounts in financiru institutions. Accounts at the banks are insured by the Fedml Deposit Insurance Corporation ("FDIC''). At times, cash may be Wlinsured or in deposit aceoWlts that exceed the FDIC insurance limit The Company has not experienced any losses in the accounts. The Company believes it is not exposed 10any significant risk on cash. Management periodically assesses the financial condition of the banks and believes that any potential credit loss is minimal. At December 31, 2019, all of the Company's cash was held at two financial institutions located in the United States. ### NOTE 9 - INCOME TAXES Effective Janwuy 1,2019, the Company is a South Carolina LLC. The members of an LLC are taxed on their proportionate share of the Company's federal and state taxable income. Acccrdingly, no provision for federal or state income taxes has been includad in the financial Statements. The Company files an income tax mum as 3 Partnership in its federal, stale and 10cal jurisdiction. The Company is not subject to federal, state and local income tax examinations by tax authorities for � prior to 2016. Tax years that remain subject to a U.S. Federal Income tax examination are 2016 through 2019. The Company is not subject 10 state income taxes in any jurisdiction that it is currently registered. There are no interest and penalties recognized in the statement of operations. ### 61Page {10}------------------------------------------------ # GLOBAL ALLIANCE sEcurunES LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBE.R 31. 2019 I !: II ' , I ## NOTEIO-COMMI�S��CONnNGENcmS From time to time, the Company may be involved in ordinary routine litigation incidental to its business. Currently, there are no litigations against the Company. Certain conditions may exisl as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment In assessing loss contingencies related to legal proceedings that are pending against the Company, or unasserted claims that may result in such proceedings, the Company evaluates the perceived, merits of any legal proceedings or un asserted claims. as well as the perceived merits of the amount of relief sought or expected to be sought therein. During the normal course of business, the Company is subject to routine examinations by regulatory authorities. As of December 31, 2019, there are no outstanding issues as a result of these examinations that could have a material impact to the financial statements. # Note 11·.SUBORDINATED LOANS As of and during the year ended December 31, 2019, the Company had not entered into any subordinated loans. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.