# ARMORY SECURITIES, LLC X-17A-5 (2025-03-31) — Broker-dealer annual report - Company: ARMORY SECURITIES, LLC - Form: X-17A-5 - Filed: 2025-03-31 - Period: 2024-12-31 - Accession: 0001438953-25-000002 - CIK: 1438953 - File #: 8-67929 - Type: Broker-dealer - Material weakness: No - Auditor: FGMK, LLC - Auditor location: Chicago, IL - Contact: Janna Spears - Phone: 818-274-6264 - Email: jspears@armorygroupllc.com - Website: armorygroupllc.com - Signed by: Eben Perison (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1438953/000143895325000002/aspublic.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden ho ## ANNUAL REPORTS FORM X-17A-5 PART III | 12
urs per response: | | |-------------------------|--| | SEC FILE NUMBER | | | | | FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | 1/1/2024 | | 12/31/2024
AND ENDING | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------|------------------------------------------------------------|------------------------------------------|--------------------------------------------| | FILING FOR THE PERIOD BEGINNING | | MM/DD/YY | | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: Armory Securities, LLC | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Security-based swap dealer
LJ Broker-dealer
□ Check here if respondent is also an OTC derivatives dealer | | | | LJ Major security-based swap participant | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 200 North Pacific Coast Highway, Ste 1525 | | | | | | | | | (No. and Street) | | | | | El Segundo | | | CA | | 90245 | | (City) | (State) | | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Janna Spears | 310-220-6400 | | | jspears@armorygroupllc.com | | | (Name) | (Area Code - Telephone Number) | | | (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
FGMK, LLC | | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | 333 W. WACKER DR,. 6TH FLOOR CHICAGO | | | | - | 60606 | | (Address) | | (City) | | (State) | (Žip Code) | | 12/17/2009 | | | | 3968 | | | (Date of Registration with PCAOB)(if applicable) | | | | | (PCAOB Registration Number, if applicable) | | | | | FOR OFFICIAL USE ONLY | | | | * Claims for exemption from the requirement that the annual reports of an independent public
accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 | | | | | | CFR 240.17a-5(e)(1)(ii), if applicable. CFR 240.17a-5(e){1)(i), if applicable. 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. {1}------------------------------------------------ | OATH OR AFFIRMATION | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | ______________________________________________________________________________________________________________________________________________________________________________
Eben Perison | | tinancial report pertaining to the firm of Armory Securities, LLC
as of | | 12/31
204 __ is true and correct. I further swear (or affirm) that neither the company nor any | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | as that of a customer. | | | | Signature: | | | | L = GAY WE 5
litle:
Notary Public - State of Florida | | Creatings on a de 259739
Chief Executive Officer | | My Comm. Expires May ", 2026 | | Notary Public | | | | This filing** contains (check all applicable boxes): | | (a) Statement of financial condition. | | = (b) Notes to consolidated 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 cash flows. | | (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | | [] {f) Statement of changes in liabilities subordinated to claims of creditors. | | (g) Notes to consolidated financial statements. | | [ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. | | [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. | | □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. | | [] (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or
Exhibit A to 17 CFR 240.18a-4, as applicable. | | [] (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. | | (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. | | □ (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. | | ( | | worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 | | CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences | | exist. | | (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. | | (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. | | (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | [] (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | @ {t} Independent public accountant's report based on an examination of the statement of financial condition. | | [] {u) Independent public accountant's report based on an examination of the financial statements under 17 | | CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. | | [] { {y} Independent public accountant's report based on an examination of certain statements in the compliance report under 17 | | CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | [] {w} Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 | | CFR 240.18a-7, as applicable. | | [] (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, | - as applicable. □ (y) Report describing any material inadequacies found to existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - □ (z) Other: \_ - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ # **Armory Securities, LLC** **Financial Report December 31**, **2024** Filed as a public document in accordance with rule 17a-5(d) under the Securities Exchange Act of 1934 {3}------------------------------------------------ | Contents | | |----------------------------------------------------------------------|------------| | Report of Independent Registered Public Accounting Firm | 1 | | Financial Statement | | | Statement of Financial Condition
Notes to the Financial Statement | 2
3 - 6 | | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To Those Charged with Governance of Armory Securities, LLC #### *Opinion on the Financial Statement* We have audited the accompanying statement of financial condition of Armory Securities, LLC (the "Company") as of December 31, 2024, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2024, 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 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. 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. 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 included examining, on a test basis, evidence regarding 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 overall 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 2024. Chicago, Illinois March 31, 2025 FGMK, LLC 333 W. Wacker Drive, 6th Floor | Chicago, IL 60606 2801 Lakeside Drive, 3rd Floor | Bannockburn, IL 60015 17W110 22nd Street, Suite 350 | Oakbrook Terrace, IL 60181 Bannockburn | Chicago | Cleveland | Denver Dubuque | Indianapolis | Oakbrook Terrace Orange County | Santa Fe | Sarasota {5}------------------------------------------------ | Assets | | |-------------------------------------------------|-----------------| | Cash | \$
4,538,854 | | Accounts receivable, net of allowance \$832,831 | 2,989,204 | | Prepaid expenses | 27,164 | | Total assets | 7,555,222 | | Liabilities and Member's Capital | | | Accounts payable and accrued expenses | 90,930 | | Contract liability | 95,000 | | Due to affiliates | 3,656,252 | | Due to registered reps | 141,538 | | Total liabilities | 3,983,720 | | Member's capital | 3,571,502 | | Total liabilities and member's capital | \$
7,555,222 | The accompanying notes are an integral part of this statement. {6}------------------------------------------------ #### **Note 1. Nature of Business and Significant Accounting Policies** Armory Securities, LLC (the "Company") is a Delaware limited liability company with the purpose of conducting business as a broker-dealer. The Company's primary business is investment banking services including providing financial advisory services to institutional investors, corporations, and individuals. These financial advisory services include capital sourcing, mergers and acquisitions, and strategic business advisory services. The Company is registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority Inc. ("FINRA"). The Company is exempt from Rule 15c3-3 relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to traditional private placement transactions and mergers and acquisitions advisory services and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3). The following is a summary of the Company's significant accounting policies: The Company follows Generally Accepted Accounting Principles ("GAAP"), as established by the Financial Accounting Standards Board ("FASB"), to ensure consistent reporting of financial condition, results of operations, and cash flows. **Accounting estimates:** The preparation of financial statement in conformity with GAAP 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 statement and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. **Cash:** Cash consists of demand deposits at U.S. financial institutions. Such deposits may be in excess of the Federal Deposit Insurance Corporation ("FDIC") insurance limits. The Company maintains its cash account with a financial institution. The total cash balance of the Company is insured by the FDIC up to \$250,000 per depositor, per bank. **Accounts Receivable and Allowance for Credit Losses:** Accounts receivable represent amounts due from customers for services provided, investment banking fees due or expense reimbursements due, all pursuant to the terms of the Company's contracts with its customers. Amounts are recorded at the invoiced amount, net of any allowance for credit losses, and do not typically bear interest. Invoices are due upon receipt and the Company assesses the collectability of the invoices by taking into consideration the aging of accounts receivable, changes in customer credit worthiness, general market and economic conditions, and historicalexperience. Management considers receivables past due if the payment is not received within 90 days of the due date. As of December 31, 2024, the Company had net receivables related to revenues from contracts with customers of \$2,989,204. The Company has recorded an allowance for credit losses of \$832,831 by using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable forecasts regarding probability of collection from its clients with past due receivables of \$1,781,133. The Company does not require collateral for accounts receivable balances. The allowance for credit losses is susceptible to significant change. It is reasonably possible that the Company incurs losses that differ from this estimate which could be material. There were write offs charged to the allowance in the amount of \$281,285 and there were recoveries of \$756,983 collected during the year ended December 31, 2024. Write offs are charged to allowance when there is certainty that receivables will not be collected. **Revenue recognition:** The Company's revenue includes both Advisory Fees and Success Fees, each as defined below, earned from providing investment banking services. {7}------------------------------------------------ Advisory Fees are typically fixed and determined based on the terms of the contract, therefore they are included in the transaction price at the time of contract inception. Advisory Fees were recognized for the year ended December 31, 2024, which are recognized over time. Success Fees, which are recognized point in time, are considered variable, as they are contingent upon a future event and are excluded from the transaction price until the uncertainty associated with the variable consideration is subsequently resolved, which is expected to occur upon achievement of the specified milestone. Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised deliverables or services to its customers. A deliverable or service is transferred to a customer when, or as, the customer obtains control of that deliverable or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the deliverables or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised deliverable or service. For certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgement is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. The amount of revenue recognized in either situation reflects the consideration the Company expects to be entitled to in exchange for those promised goods or services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include Success Fees in the transaction price, the Company considers the range of possible outcomes, the predictive value of its past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of the Company's influence, such as market volatility or the judgment and actions of third parties. The Company does not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at December 31, 2024. Success Fees that are contingent upon completion of a specific milestone and fees associated with these services are also excluded as the fees are considered variable and not included in the transaction price at December 31,2024. The Company recognizes Advisory Fee revenue, based on a time-based input method, over the period in which the services are rendered. Success Fees are typically based on a percentage of the equity or debt financing raised as defined in the terms of the contract. Due to Success Fee revenue being severely constrained up until the point in which it is known that the equity or debt transaction closes (the "specified milestone"), Success Fee revenue will not be recognized until the confirmed closing date of the respective transaction. Payment for Advisory Fees are generally due promptly upon completion of a specified milestone or, for Retainer Fees, periodically over the course of the engagement. Payment of Success Fees are generally due upon closing of the respective transaction. The timing of the Company's revenue recognition may differ from the timing of payment by its customers.. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records a contract liability until the performance obligations are satisfied. {8}------------------------------------------------ The Company's contract liability relates to Retainer Fees received from engagements where the performance obligation has not yet been satisfied. As of December 31, 2024, contract liability was \$95,000. In connection with its services, the Company, either directly or through its affiliates, may incur out of pocket expenses which are reimbursed by its customers. The Company records the revenue and expense related to such amounts when incurred. **Income taxes:** The Company is taxed as a partnership under the provisions of the Internal Revenue Code and, accordingly, is not subject to federal income taxes. Instead, the members are liable for federal and state income taxes on their respective share of the taxable income of the Company. Accordingly, no provision or benefit for income taxes has been made as the Company's taxable income or loss is included in the tax return of the members. FASB guidance requires the evaluation of income tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained "when challenged" or "when examined" by the applicable tax authority. Income tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. For the year ended December 31, 2024, management has determined that there are no material uncertain income tax positions. The Company files income tax returns in U.S. federal jurisdiction, and various states. The Company's accounting policy is to not allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statement. **Newly Adopted Accounting Pronouncement Adopted**: In November 2023, FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. We adopted this standard effective January 1, 2024. See note 8 for further details. #### **Note 2. Net Capital Requirements** The Company is a broker-dealer subject to the SEC Uniform Net Capital Rule (Rule 15c3-1), which requires the Company to maintain minimum "net capital" equal to the greater of \$5,000 or 6-2/3 percent of "aggregate indebtedness," as defined, and the ratio of aggregate indebtedness to net capital shall not exceed 15 to 1. Rule 15c3- 1 also provides that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to 1. Net capital changes from day to day, but at December 31, 2024, the Company had net capital of \$555,134, which was \$295,886 above its required net capital of \$259,248. At December 31, 2024, the Company's aggregate indebtedness to net capital ratio was 7.0 to 1. #### **Note 3. Customer Concentration** For the year ended December 31, 2024, the Company had two customers which represented approximately 44 percent of gross accounts receivable. A customer is considered major when the customer represents more than 10 percent of net receivables as of December 31, 2024. #### **Note 4. Related-Party Transactions** On October 1, 2014, the Company entered into an expense sharing agreement with Armory Group, LLC ("Armory Group") whereby Armory Group agrees to pay certain overhead expenses and employee compensation and benefits on behalf of the Company. Expenses allocated to the Company are reflected as expense sharing on the accompanying Statement of Operations and include compensation and related costs for personnel, technology, communication, support services and occupancy. A balance of \$3,656,252 was due to affiliates at December 31, 2024. These balances are unsecured, non-interest bearing and are due on demand. {9}------------------------------------------------ ### **Armory Securities, LLC Notes to the Financial Statement December 31, 2024** On October 1, 2014, the Company entered into commission agreements with specific registered representatives whereby the Company generally receives 10 percent of the revenue generated by such individuals. Such amount includes allocations of revenue generated by such individuals and other revenue generated where the registered representative assisted the Company with other revenue sources. #### **Note 5. Member's Capital and Equity Compensation** Member's capital consists of two classes of units that represent membership interests, Class A and B. The Members are not required to make additional contributions anytime and their risk is limited to existing capital balances. Class A members have the right and full authority to manage, control, administer and operate the business and affairs of the Company. Class B members have the right to vote on matters as specifically noted in the operating agreement. The Class B units are intended to constitute "profit interests" within the meaning of Internal Revenue Service Revenue Procedures 93-27 and 2001-43. The Class B units entitle the holders to pro rata participation in future profits of the Company. In 2018, Armory Group purchased all Class A and Class B units in the Company from a minority holder of the units. Subsequent to this transaction, the Company is now wholly owned by ArmoryGroup. As of December 31, 2024, there are 1,676 outstanding Class A units and 3,444 outstanding and vested Class B units. As of December 31, 2024, Class A member's total capital balance is \$1,169,109 and Class B member's total capital balance is \$2,402,393. #### **Note 6. Indemnifications** In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties that provide indemnifications under certain circumstances. The Company's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company expects the risk of loss to be remote. #### **Note 7. Subordinated Liabilities to Claims of General Creditors** During the year ended December 31, 2024, there were no liabilities subordinated to the claims of general creditors. Accordingly, a statement of changes in liabilities subordinated to claims of general creditors has not been included in this financial statement. #### **Note 8. Subsequent Events** The Company has evaluated subsequent events for potential recognition and/or disclosure through March 31, 2025, the date this financial statement was available to be issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.