Full text of FOCUS SECURITIES LLC's X-17A-5 filed 2019-02-25 (period 2018-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ ## FOCUS SECURITIES LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2018 ## Note A Summary of Significant Accounting Policies ## Nature of Operations: FOCUS SECURITIES LLC (the "Company"), was formed in Georgia as a limited liability company in March 2009. The Company is a wholly-owned subsidiary of FOCUS Holdings USA, Inc. (previously known as FOCUS, LLC) (the "Sole Member") and is a registered broker-dealer under the Securities Exchange Act of 1934, and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company provides merger and acquisition advisory services to domestic and international companies and assists its clients in analyzing capitalization alternatives and arranging private placements of debt, equity and equity-related securities. The Company does not maintain customer accounts. ### Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America 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 statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### Concentration of Credit Risk Arising From Cash Deposits in Excess of Insured Limits: The Company maintains cash balances at two financial institutions that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant risks on cash. ### Revenue Recognition: Investment banking revenues solely consist of merger and acquisition transaction success fees. Revenue is recognized upon completion of the transaction. #### Compensation and Benefits: Compensation and benefits in the statement of operations includes \$5,592,901 of commissions paid to registered representatives of the Company during the year ended December 31, 2018. {1}------------------------------------------------ ## FOCUS SECURITIES LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2018 ## Note A Summary of Significant Accounting Policies (Continued) ## Income Taxes: The Company is a single member limited liability company. The Company is a disregarded entity for tax purposes and does not fil…Read the full text as markdown