Full text of TTBD, LLC's X-17A-5 filed 2021-02-26 (period 2020-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ # **TTBD, LLC** #### **NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2020** #### **1. GENERAL** **Basis of Presentation** — The accompanying financial statements of TTBD, LLC (TTBD or the "Company"), a limited liability company and securities broker-dealer, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). TTBD is a wholly owned subsidiary of TT Securities Group, LLC (TTSG). TTSG is a wholly owned subsidiary of Trading Technologies International, Inc. (TTI). **Nature of Operations** — The Company, a Delaware corporation, is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority, Inc. (FINRA). The Company licenses software and patents on a transactional fee basis for customers trading securities. FINRA compliance and SEC regulations require that a broker-dealer be registered when fee-based structures are in place for trading securities on a transactional basis. The customers of the Company are primarily proprietary trading firms, investment banking firms, commercial banks, and derivative exchanges. These customers are located in the United States of America, Europe, and India. Three of the Company's customers account for 81% of total revenue. #### **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** **Revenue Recognition** — The Company recognizes revenue on contracts with its customers when it transfers control of the promised services to the customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenue from software licenses is earned on a transactional basis in the month the software is used. A receivable is established for fees earned but not yet collected. Customer payment terms are generally 30-45 business days from date of invoice. As of December 31, 2020 the receivable balance from software license revenue was \$15,575. Revenue from royalty arrangements are earned on a transaction basis when transactions exceed a minimum contractual threshold. In December 2020, one customer exceeded their contractual threshold resulting in \$143,131 of royalty revenue. This customer's royalty obligation expires on February 9, 2021. As of December 31, 2020 the receivable balance from royalty arrangements was \$143,131. **General and Administrative Expenses** — General and…Read the full text as markdown