# EM SECURITIES LLC X-17A-5 (2023-12-28) — Broker-dealer annual report - Company: EM SECURITIES LLC - Form: X-17A-5 - Filed: 2023-12-28 - Period: 2023-09-30 - Accession: 0001443552-23-000002 - CIK: 1443552 - File #: 8-67997 - Type: Broker-dealer - Material weakness: No - Auditor: Withum Smith & Brown, PC - Auditor location: New York, NY - Contact: Kathy Efrem Sipinick - Phone: 212-897-1686 - Signed by: Robert Stanley (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1443552/000144355223000002/em23s.pdf --- {0}------------------------------------------------ # FINANCIAL STATEMENT # ANO # REPORT OF INDEPENDENT REGISTERED PUBLIC \CCOlTNTING FIRM For the year ended September 30, 2023 {1}------------------------------------------------ **UNITED ST ATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 **ANNUAL** SEC FILE NUMER **REPORTS FORM X-17A-S PART** Ill 1--- 8- 67997 **FACING PAGE** Information **Required** Pursuant to Rules **17a-S. 17a-12, and 18a-7** under the Securities **Exchange Act** of **1934** FILING FOR THE PERIOD BEGINNING **\_1\_0\_/0\_1\_/\_2\_2 \_\_** AND ENDING MM/DD/VY 09/30/23 MM/DD/YY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: EM Securities LLC TYPE OF REGISTRANT (check all applicable boxes): [g Broker-dealer D Security-based swap dealer D Major security-based swap participant 0 Chee" here If respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 405 Lexington Ave, 20th Floor (No and Street) New York NY 10174 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Kathy Efrem (212) 897-1686 kefrem@integrated.so1utions (Name) (Area Code - Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* WithumSmith+Brown, PC (Name-if individual, state last, first, and middle name I 200 JEFFERSON PARK SUITE 400 Whippany NJ 07981-1070 !Address) (City) (State1 (Zip Code) 100 (Date of Registration with PCAOB)(lf applicable) (PCAOB Registration Number, If applicable) **FOR OFFICIAL USE ONLY** · 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. {2}------------------------------------------------ # OATH OR AFJ,'IRMATION I, Robert Stanley , swear (or affirm} that, to the best of my knowledge and belief, the fln1ncl1I report pertaining to EM Secur1t1e& LLC as of 09/30123 , ls **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 dassifled .solely as that of a customer. Jt~ 5 J~ *~~e!tE* Title ~~ Kacey Marte Albertson ![](_page_2_Picture_6.jpeg) NatmYNJlc.bllal~ **tu-•OII El;nf** 0&'31!2026 {3}------------------------------------------------ # This filing•• contains (check **all applicable boxes):** - rn (a) Statement of financial condition. - CEJ (b) Notes to unconsolidated or consolidated statement of financial condition, as applicable - o (c) Statement of income (loss) or, 1f there 1s other comprehensive income in the penod(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X) - D (c.l) Statement of cash flows - o (e) Statement of changes in stockholders' or partners or members· or sole proprietors equity, as applicable. - D ( I) Statement of changes in liabilities subordinated to claims of creditors. - D (g ) Notes to unconsolidated or consolidated financial statements,, as applicable - D (h) Computation of net capital under 17 CFR 240. 1Sc3-1 or 17 CFR 240 18a-1, as applicable. - D ( i) Computation of tangible net worth under 17 CFR 240.18a-2. - O (i) 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 240.1Sc3-3 or Exhibit A to 17 CFR 240. 18a-4, as applicable - D (I) Computation for Determination of PAS Requirements under Exhibit A to§ 240.1Sc3-3 - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3 - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(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 240.1Sc3-l, 17 CFR 240. 18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240 1Sc3-3 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 - CEJ (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. - D (r) Compliance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable - D (<;) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a 7, as applicable - @ (t) Independent public accountant's report based on an examination of the statement offinancial condition. - D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S. 17 CFR 240 18a-7, or 17 CFR 240.17a-12, as applicable - D (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 Cw) 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 - D l \)Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12, as applicable. - D (~) 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) D (I) Other· - --- ---------- --- ---- --- --- ----------- - • *\_.To* request confidential treatment of certain portions of this filing, see 17 CFR 240.17o-5(e}{3) or 17 CFR 240.180 7(d){2), as applicable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) -- # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Management and Member EM Securities LLC: ### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of EM Securities LLC (the "Company"), as of September 30, 2023, 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 September 30, 2022. in conformity with accounting principles generally accepted m the United States of America. ### **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility 1s to express an opinion on this financial statement based on our audit. We are a public accounting firm registered with the Pubhc Company Accounting Oversight Board (Unrted States) ("PCAOB") and are required to be independent with respect to the Company 1n accordance with the U.S. federal securities laws and the applicable rules aod regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit m 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 1s 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 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 m 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 2016. Whippany New Jersey December 22. 2023 WithumSmith+Brown, PC 20() Jellerson Par><, 444.180 | |---------------------|-----------------| | Accounts receivable | 5.825,000 | | Total assets | \$
6.269.180 | | MEMBER'S EQUITY | | | Member's Equity | \$
6.269.180 | | | \$
6.269.180 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENT** ## **SEPTEMBER 30, 2023** #### NOTE I. DESCRIPTION OF ORGANIZATION AND BUSINESS EM Sccunties LL( (the ··company'') provides broker dealer services including financial advisory serv1cc::s. underv.riting and selling group parLicipant. placement agent and similar services. and investing in securities. The Company 1s a broker dealer registered with the SecuriLies and Exchange Commission ("SEC') and is a member of lhe Financial I ndusuy Regulatory Authoricy (''FINRA "). The Company is a wholly ov.rned subsidiary of Evolution Media Capital LLC ("EMC') #### NOTE2. SUMMARY OF SIGNirlCANT ACCOUNTING POLICIES ## Basis of Presentation These financial statemt!nls were prepared 111 conformity with accounting principles generally accepted in the United States or America {"GAAP") which requires managemem to make estimates and assumptions that affecr the reported amounts of assets and liabilities and disclosure of contingent assets and I iabi Ii ties at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. ### Accounts Receivable and Allowance for Credir Losses Accounts receivable Lhat management has the intent and abilit) ro hold for the foreseeable future are reported in the statement or financial condiLion al outsLanding amounts adjusted for any charge-offs and the allowance for credil losses accounts. The Company's management periodically estimates the allowance for credit losses. Losses from uncollectible receivables are accrued when both of the following conditions are mer: (a) Information available before !he financial statements are issued indicates that it is probable that an a<;set has been impaired at the date of the financial statements. and (b) the amount of the loss can be reasonably estimated. Those conditions may be considered in relation to individual receivables or in relation to groups of similar types of receivables. The Company reviews individually each trade receivable for collectability and performs on-going credit evaluations of its customers and determines the allowance for credit losses based on historical write-off experience, customer specific facts and general economic conditions that may affect a client's ability LO pay. Bad debt expense. if any, is included in the statement or operations. As of October I, 2022 and September 30. 2023. accounts receivable net of allowance for credit losses was \$:!5.000 and \$5.8::!5.000. respectively. fhere were no contract assets or contract liabilities al October I. :!022 or September 30. 2023. rhe Company follows ASC Topic 326. Financial Instruments - Credit Losses (''ASC 3:!6"). ASC 326 impacts the impairment model for certain financial asscrs by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life or the financial asset. {7}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENT** ## **SEPTEMBER 30, 2023** #### NOTE2. **SUMMARY** OF SIGNIFICANT ACCOUNTING POLICIES (Continued) #### Accounts Receivable and Allowance for Credit Losses {Continued) An allowance for credit losses may be based on Lhe Company's expectation of the collectability of its financial assets utilizing the CECL frarneworl... The Company considers factors such as historical experience. credit quality. age of balances and current and future economic conditions that may affect the Company·s expectallon of collectability in determining the allowance for credit losses. ### Income Taxes The Company 1s a limited liabilit)- company. treated as a disregarded enllty for federal, state and most city income tax purposes: it ts subject to minor city income taxes but these are assumed by the Company's parent. The Company therefore does not incur income taxes at the Company level. Instead Its earn111gs and losses are passed through to the member and included in the calculation of the member's tax liability. Accordingly. no provision for income taxes has been made in the accompanying financial statements. ### Uncertain Tax Positions In accordance with GAAP. the Compru1) 1s required to determine whether a tax position of the Company is more likely than not to be sustained upon examination by the applicable taxing authority. including resolution of an:> related appeals or litigarion processes. based on che technical merits of the position. The ta, benefit to be recognized is measured as the largest amount of benefit that 1s greater than fifty percent likely of being realized upon ultimate settlement. De-recognition of a tax benefit previously recogn1Led could result in the Company recording a tax liability that would reduce member's equity. This policy also provides guidance on thresholds. measurement. de-recognition. classification. interest and penalties. accounting in interim periods, disclosure. and transition that is intended lo provide better financial statement comparahilily among differem entities. However. management"s conclus1on<; regardtng this policy ma) be sub\_1ect lo review and adjustment at a later date based on factors including. but not limited to. on-going analysis of and changes to tax laws. regulation and interrretations thereof. Management has analyzed the Company·s ta:,.. positions and has concluded that no liability for unrecogn1Led ta-.: benefits should be recorded as of September 30. 2023. ### Concentration~ /\ 11 cash deposits are held by one financial institution and therefore are sub.1ect to the credit risk at that financial institution. The Compan) has not experienced any losses in such accountS and does not believe there to be any significant credit risk with respect to these deposilS {8}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENT** ## **SEPTEMBER 30, 2023** #### NOTE:!. SUMMARY OF SIGNIFICANT ACCOUNTING POI ICIES (Continued) ### Concentrations (Continued) Management does not consider the company to be at risk with respect to its cash halance. For the year ended September 30, 2023, approximately 81 % of the Company's revenues arc from I client #### NOTE 3. RELATED PARTY fRANSACTIONS The Company has an agreement with EMC. under which all expenses of the Company are borne by EMC For the year ended September 30. 2023. operating expenses of the Company amounting LO approximately \$3.383.000 met the conditions as defined in the agreement and were borne b) EMC The activities of the Company include significant transactions wilh related parties and may not necessarily be indicative of the conditions that would have existed or the results of operations if the Company had operated as an unaffiliated business. #### NOTE 4. NET CAPITAi REQUIREMENTS As a broker dealer the Company is subject to the SF( Uniform Net Capital Rule (SEC Rule I Sc3-I ). In accordance with the net capital provisions of Rule I 5c3-1. the Company is required to ma1nla111 minimum net capital as defined of not less than the greater of \$ I 00.000 or 6-2/3% of the Company's total aggregate indebtedness. The basic concept of the nel capital rule is liquidity: iLs objective being to require a broker dealer to have al all times sufficient liquid assets to meet itc; current liabilities. As of September 30. 2023, the Company had net capital of \$444.180. which exceeded the mmimum requirement of \$ 100.000 by \$344,180. #### NOTES. RULE l5C3-3 The Company does not handle cash or securities on behalf of customers and accordingly has no obligation under SEC Rule I 5c3-3 . Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.