# LYNDHURST SECURITIES INC. X-17A-5 (2024-04-01) — Broker-dealer annual report
- Company: LYNDHURST SECURITIES INC.
- Form: X-17A-5
- Filed: 2024-04-01
- Period: 2023-12-31
- Accession: 0001443256-24-000007
- CIK: 1878575
- File #: 8-70777
- Type: Broker-dealer
- Material weakness: No
- Auditor: LMHS PC
- Auditor location: Norwell, MA
- Contact: Mark T Manzo
- Phone: 12015191905
- Email: mmanzo@moppartners.com
- Website: moppartners.com
- Signed by: Michael Karapetian (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1878575/000144325624000007/lyndpubliced.pdf
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# **Lyn�hurst Securities, Inc.**
**Statement of Financial Condition For the Year Ended December 31, 2023**
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#### **Lyndhurst Securities, Inc.**
#### **December 31, 2023**
#### **Table of Contents**
| Facing page and Oath or Affirmation Page | 1-2 |
|--------------------------------------------------------|-----|
| Report oflndependent Registered Public Accounting Firm | 3 |
| Financial Statements | |
| Statement of Financial Condition | 4 |
| Notes to the Financial Statements | 5-9 |
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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORTS FORM X-17A-5 PART Ill FACING PAGE** OMBAPPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-70777 **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING O**1/01 /23** MM/DD/YY AND ENDING **12/31 /23** MM/DD/YY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: LYNDHURST SECURITIES LLC TYPE OF REGISTRANT (check all applicable boxes): � Broker-dealer □ Security-based swap dealer D Check here if respondent is also an OTC derivatives dealer □ Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 6928 OWENSMOUTH AVENUE, SUITE 200 (No. and Street) WOODLAND HILLS CA 91303 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Mark T Manzo (201) 519-1905 mmanzo@moppartners.com (Name) (Area Code -Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* LMHS, P.C. (Name - if individual, state last, first, and middle name) 80 Washington St, Bldg S Norwell MA 02061 (Address) (City) (State) (Zip Code) 02/24/2009 3373 **r te of RegJ,t,aUoo with PCAOB)(ff applkablel FOR OFFICIAL USE ONLY {PCAOB Reglst,aUoo N"mbe,,** If **applicable) I** \* Claims for exemption from the requirement that the annual reports be covered by the 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-S(e)(l)(ii), 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 0MB control number.
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#### **OATH OR AFFIRMATION**
| I | , Michael Karapetian
swear (or affirm) that, to the best of my knowledge and belief, the |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | financial report pertaining to the firm of LYNDHURST SECURITIES, INC.
as of
2�, is true and correct. I further swear (or affirm} that neither the company nor any
12/31 |
| | 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. |
| | |
| | Signatur |
| | |
| | a
Title:
JOANNE M. MOORELAND |
| | Notary Public - California
ii
_
CEO
i
Los Ansetes County
s: |
| | · Commission # 2380430 |
| | My Comm. Expire, Oct 27, 2025 |
| | |
| | T is filing** contains (check all applicable boxes): |
| | l!iiiii (a) Statement offinancial condition. |
| l!iiiii | (b) Notes to consolidated 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 |
| | comprehensive income (as defined in§ 210.1-02 of Regulation S-X). |
| | □ (d) Statement of cash flows. |
| | D (e} Statement of changes in stockholders' or partners' or sole proprietor's equity. |
| D | (f) Statement of changes in liabilities subordinated to claims of creditors. |
| | □ (g) Notes to consolidated financial statements. |
| | D (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. |
| D | (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. |
| D | (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. |
| D | (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. |
| | D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net |
| | 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. |
| | D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. |
| l!iiiii | (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. |
| | D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. |
| l!iiiii | (t) Independent public accountant's report based on an examination of the statement of financial condition. |
| | l!iiiii (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 |
| | CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. |
| | □ (v) 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. |
| | D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 |
| | CFR 240.18a-7, as applicable. |
| li!!ii | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, |
| | as applicable. |
| | D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or |
| | a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). |
| | 0 (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.*
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# *Report of Independent Registered Public Accounting Firm*
To the Stockholder Lyndhurst Securities, Inc. Woodland Hills, California
#### *Opinion on the Financial Statements*
We have audited the accompanying statement of financial condition of Lyndhurst Securities, Inc., as of December 3 1, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Lyndhurst Securities, Inc. as of December 3 1, 2023, 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*
This financial statement is the responsibility of the entity's management. Our responsibility is to express an opinion on this 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 Lyndhurst Securities, Inc. 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 statements are free of material misstatement, whether due to error or fraud. Our 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. 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 statements. We believe that our audit provides a reasonable basis for our opinion.
LMHS, P.C.
We have served as Lyndhurst Securities, Inc.'s auditor since 2022. Norwell, Massachusetts
March 27, 2024
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# **Lyndhurst Securities, Inc.**
# **Statement of Financial Condition December 31, 2023**
#### **ASSETS**
| Cash and cash equivalents [Note 2] | \$
134,252
1,114 |
|--------------------------------------------------------------------------------|------------------------|
| Accounts Receivable | |
| Prepaid Expenses
Fixed assets -
net of accumulated depreciation of \$213 | 12,369
1,064 |
| | |
| Total assets | \$
148,799 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | |
| Liabilites: | |
| Current liabilities | |
| Accounts payable & Accrued expenses | \$
5,215 |
| Commissions payable | 55,264 |
| Payable to affiliate | 6,525 |
| Total liabilities | 67,004 |
| Stockholder's equity : | |
| Common stock, \$1 par value, 10,000 shares authorized | |
| 1,000 shares issued and outstanding | 10,000 |
| Additional paid in capital | 143,664 |
| Retained Eamings/(Accumulated deficit) | (71,869) |
| Total Stockholder's equity | 81,795 |
| Total liabilities and Stockholder's equity | \$
148,799 |
*The accompanying notes are an integral part of these financial statements* **4**
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#### **Note 1: Organization**
Lyndhurst Secu rities, I nc. (the "Com pa ny") was orga nized in the State of Ca l ifornia on J une 11, 2022.
The Company registered as a broker-dea ler with the Securities Excha nge Com mission on J uly 28, 2022, is a member of the Fina ncial I ndustry Regu latory Authority ["FINRA"] a nd the Security I nvestor Protection Corporation ["SI PC"].
The Com pa ny tra nsacts business as a broker sel ling annuities, m utual funds, Delawa re Statutory Trusts ("DST") a nd acts as a sel ling group participa nt in non-publicly traded REIT offeri ngs.
U nder its membership agreement with FINRA the Com pa ny will not cla im an exem ption from SEA Rule 15c3-3 . The Com pa ny will not accept customer fu nds or securities a nd will not have possession of a ny customer funds or secu rities in connection with their activities. The Com pa ny is a Non-Covered firm that relies on Footnote 74 to SEC Release 34-70073, a nd as discussed in Q&A 8 of the related FAQ issued by the SEC staff.
## **Note 2: Summary of Significant Accounting Policies**
## **Basis of Presentation**
The accompa nying financia l statements of the Com pa ny have been prepa red in accorda nce with accounti ng principles genera lly accepted in the U nited States of America . The Com pa ny uses the accrua l method of accounting.
# **Use of Estimates**
The prepa ration of fi na ncia l statements in conformity with GAAP requires ma nagement to make estimates a nd assumptions that affect the reported amounts of assets a nd lia bilities a nd disclosures of contingent assets a nd liabilities at the date of the fi na ncia l statements as well as the reported a mount of revenues a nd expenses during the reporti ng period . Actual results could differ from these estimates.
# **Cash and Cash Equivalents**
The Company considers all highly liquid instruments with an origi nal maturity of three months or less when purchased to be cash equiva lents. As of Decem ber 31, 2023, the Company had a cash bala nce of \$134,252.
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# **Note 2: Summary of Significant Accounting Policies Continued**
## **Accounting for Credit Losses**
In J une 2016, The Fina ncial Accounting Sta nda rds Boa rd ("FASB") issued Accounting Sta nda rds U pdate ('ASU") 2016-13, Fina ncial Instru ments ---- Credit Losses (Topic326) : Measurement of Credit Losses on Fina ncia l I nstruments, which a mends the FASB's guida nce on impairment of fi nancial instru ments. The ASU adds to GAAP, an impairment model (known as the cu rrent expected credit loss ("CECL") model) that is based on expected losses rather than incu rred losses. U nder the new guida nce, the Company recognizes as an a l lowa nce, its estimate of lifeti me expected credit losses, which the FASB bel ieves will result in more timely recognition of such losses, If a ny. The ASU is also intended
to reduce the com plexity of GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. Further, the ASU ma kes ta rgeted cha nges to the impairment model for available-for-sa le debt securities.
At December 31, 2023, ma nagement has determi ned that the Com pa ny had no receiva bles i m pacted by the new guida nce.
# **Revenue Recognition**
The Company recognizes private placement fees, prima rily in Delawa re Statutory Trusts ("DST") upon completion of the private placement offering. The Com pa ny receives private placement fees in accorda nce with terms stipulated in its Soliciti ng Dea ler agreements. Fees received by the Com pany consist of sa les com missions a nd a dea ler rea llowa nce fee. Sa les commissions a nd dea ler rea llowa nce fees a re not availa ble for distri bution to the Company unti l purchaser funds have clea red normal ba n ki ng cha n nels and Seller has accepted the tender of purchaser.
#### A. Significa nt accounting policy
Revenue is measu red based on a consideration specified in a contract with a customer, a nd excludes a ny sa les incentives a nd amounts collected on beha lf of third pa rties. The Com pa ny recognizes revenue when it satisfied a performa nce obligation by tra nsferring control over a product or service to a customer.
Taxes a nd regu latory fees assessed by a government a uthority or agency that a re both im posed on a nd concu rrent with a specified revenue-producing transaction, that a re col lected by the Com pa ny from a customer, a re excluded from revenue.
#### B. Nature of services
Fees ea rned : Primari ly, this incl udes fees ea rned from private placements as a selling group pa rtici pa nt in Delawa re Statutory Trusts, a broker selling ann uities a nd collecting 12b-1 fees.
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# **Note 2: Summary of Significant Accounting Policies Continued**
# **Professional Fees**
As of Decem ber 31, 2023, the Company paid \$86,725 in professional fees, which included contract services, com plia nce consulti ng a nd accounting fees.
## **Furniture and Equipment**
Depreciation is provided using the straight-line method over estimated useful life of the asset of five yea rs for equi pment. The tota l cost of equi pment was \$1,277 a nd accum u lated depreciation was \$277.
## **Note 3: Securities Owned**
As of the statement of fina ncial condition date the Com pa ny does not own a ny corporate stocks or debt instruments.
#### **Note 4: Income Taxes**
The Com pa ny accounts for i ncome taxes under the asset a nd liability method, which req uires the recognition of deferred tax assets a nd liabilities for the expected future tax consequences of events that have been included in the fi nancial statements. U nder this method, deferred tax assets a nd liabilities a re determined on the basis of the differences between the fina ncial statement a nd tax bases of assets a nd liabilities using enacted tax rates in effect for the yea r in which the differences a re expected to reverse.
The effect of a cha nge in tax rates on deferred assets a nd lia bilities is recognized in i ncome in the period that i ncl udes the enactment date.
The Com pa ny recognizes deferred tax assets to the extent that we bel ieve these assets a re more likely than not to be rea lized. In making such a determination, we consider all availa ble positive a nd negative evidence, including future reversa ls of existi ng taxa ble tempora ry differences, projected future taxa ble i ncome, tax-planning strategies, and results of recent operations.
If we determi ne that we would be a ble to rea lize out deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset va luation a l lowa nce, which would reduce the provision for income taxes.
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## **Note 5: Fair Value**
The Com pa ny adopted Fina ncial Accounti ng Sta ndards ("SFAS") ASC 820 Measu rements a nd Disclosures, for assets a nd measured at fa ir va lue on a recurring basis. The ASC 820 had no effect on the Com pa ny's financia l. ASC 820 accomplishes the following key objectives:
- Defines fair va lue as the price that would be received to sell an asset or paid to tra nsfer a liabi lity in an orderly tra nsaction between ma rket pa rticipa nts at the measurement date;
- Esta blishes a three-level hiera rchy (the "Val uation Hiera rchy") for fair va l ue measurements;
- Requires consideration of the Com pa ny's creditworthi ness when va luing liabilities; a nd expands disclosures a bout instru ments measu red at fair va lue.
The Va luation Hiera rchy is based upon the tra nspa rency of inputs to the va l uation of an asset or liability as of the measurement date. A fi na ncia l instrument's categorization within the Va l uation Hiera rchy is based upon the lowest level of input that is significa nt to the fa ir va lue measurement. The three levels of the Va l uation Hiera rchy a nd the distri bution of the Com pa ny's fina ncial assets within it a re as follows:
- Level 1 in puts to the va l uation methodology a re quoted prices (unadjusted) for identica l assets or liabilities in active ma rkets.
- Level 2 inputs to the va luation methodology i ncl uded quoted prices for si milar assets and liabilities in active markets, a nd i nputs that a re observa ble for the
asset or liabi lity, either directly or indirectly, for substa ntia lly the full term of the fi nancial i nstrument.
Level 3 - inputs to the va luation methodology a re unobserva ble a nd significa nt to the fair va lue measurement.
Certa in fi nancial instruments a re ca rried at cost on the statement of fi na ncia l condition, which approximate fa ir va lue due to their short-term highly liquid natu re. These instruments incl ude cash a nd cash equiva lents.
#### **Note 6: Net Capital Requirements**
Pursua nt to the Basic Uniform Net Ca pital provisions of the Securities a nd Excha nges Com mission, the Com pa ny is required to maintain a minimum net ca pita l, as defi ned, in such provision. Further, the Securities a nd Excha nge Com mission U niform net ca pita l rule (Rule 15c3- 1) req uires that the ratio of aggregate indebtedness to net ca pita l, as defined, sha ll not exceed 15 to 1. Net ca pita l a nd the related net ca pita l ratio may fluctuate on a daily basis. At December
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# **Note 6: Net Capital Requirements Continued**
31, 2023 the Company had net ca pita l and net ca pita l requirements of \$67,248 a nd \$5,000 respectively. The Company's aggregate indebtedness to net ca pita l ratio was .9964 to 1 which is less than 15:1.
### **Note 7: Commitments and Contingencies**
At December 3 1, 2023 the Company did not have a ny commitments, conti ngencies for guara ntees that might result in a loss or future obligation.
## **Note 8: Related Party Transactions**
Effective April 01, 2023, the Company entered into an expense sharing agreement with Laza ri Ca pita l Ma nagement, I nc. ("LCM"), an affi liate of the Compa ny, whereby a portion of personnel costs a nd office expenses a re a l located to the Com pa ny. Duri ng 2023, the Com pa ny recorded \$16,875 in personnel costs and \$2,250 in office expenses pursuant to the expense sha ring agreement.
At December 31, 2023, the Company owed LCM \$6,525 directly related to the a l located costs.
## **Note 9: Subsequent Events**
Ma nagement has eva l uated subsequent events through March 27, 2024, the date which the fi nancial statements were availa ble to be issued.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.