# HEIGHT SECURITIES, LLC X-17A-5 (2024-04-15) — Broker-dealer annual report - Company: HEIGHT SECURITIES, LLC - Form: X-17A-5 - Filed: 2024-04-15 - Period: 2023-12-31 - Accession: 0001465556-24-000001 - CIK: 1465556 - File #: 8-68277 - Type: Broker-dealer - Material weakness: No - Auditor: Michael Coglianese CPA, P.C. - Auditor location: Bloomingdale, IL - Contact: Jonathan Self - Phone: 404-596-5393 - Email: jself@heightllc.com - Website: heightllc.com - Signed by: Jonathan Self (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1465556/000146555624000001/public3.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) **SECURITIES AND EXCHANGE COMMISSION** Washington, D.C. **20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART** Ill | SEC FILE NUMBER | |-----------------| | 8-68277 | | FACING PAGE | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--| | | | | | | | | FILING FOR THE PERIOD BEGINNING _O_1_/O_1_/_2_3 | | | __
_ | | | | | MM/DD/VY | | | | | | | | | | | | | NAME OF FIRM: _H_E_I_G_H_T_S_E_C_U_R_IT_IE_S_, L_L_C | | | _ | | | | TYPE OF REGISTRANT (check all applicable boxes):
~ Broker-dealer
□ Security-based swap dealer
□ Major security-based swap participant
D Check here if respondent is also an OTC derivatives dealer | | | | | | | | | | | | | | | | | | | | | (No. and Street) | | | | | | | DC | | 20005 | | | | | (State) | | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | 404-41 0-7962 | | JSELF@HEIGHTLLC.COM | | | | | | | | | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | MICHAEL COGLIANESE CPA,P.C. | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | | | | 60108 | | | | (City) | | (State) | (Zip Code) | | | | | | | | | | | (Date of Registration with PCAOB)(if aoolicable)
(PCAOB Registration Number, if aoolicable) | | | | | | | | | | | | | | | MM/DD/VY | ___
A. REGISTRANT IDENTIFICATION
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
1401 NEW YORK AVENUE NW, SUITE 700
(Area Code -Telephone Number)
B. ACCOUNTANT IDENTIFICATION
1255 E. LAKE STREET STE. 303 BLOOMINGDALE
FOR OFFICIAL USE ONLY | Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
AND ENDING _1_2_/_3_1_/2_3
________
(Email Address)
IL
3874 | | | \* 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. {1}------------------------------------------------ ### **OATH OR AFFIRMATION** I, JONATHAN SELF swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of HEIGHT SECURITIES, LLC as of 12/31 2~ 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. **This filing\*\* contains (check all applicable boxes):** - - ~ (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 (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (fl Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (kl 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. - D (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-l, 17 CFR 240.18a-l, 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. - ~ (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-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. - ~ (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (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. - 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 (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. - D (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). D (z) Other: \_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-S(e}(3} or 17 CFR 240.18a-7{d}(2}, as applicoble. s;gnature,~ Title: \) \_ ![](_page_1_Picture_34.jpeg) {2}------------------------------------------------ Audited Financial Statements # HEIGHT SECURITIES, LLC Washington, DC December 31, 2023 {3}------------------------------------------------ # CONTENTS #### Page | AUDITED FINANCIAL STATEMENTS | | |----------------------------------|-----| | Independent Auditors Report | 1 | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3-6 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Bloomingdale I Chicago # **Report of Independent Registered Public Accounting Firm** To the Members of Height Securities, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Height Securities, LLC as of December 31 , 2023, and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Height Securities, LLC as of December 31 , 2023 in conformity with accounting principles generally accepted in the United States of America. ### **Basis for Opinion** This financial statement is the responsibility of Height Securities, LLC's management. Our responsibility is to express an opinion on Height Securities, LLC'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 Height Securities, LLC 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. 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 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. We have served as Height Securities, LLC's auditor since 2018. (h, *M* G,lw,,t\_ *UA,* P. C. Bloomingdale, IL April 15, 2024 {5}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION # HEIGHT SECURITIES, LLC | | | | December 31
, 2023 | | |--------|---------------------------------------|---------------|-----------------------|-------------| | | | ASSETS | | | | ASSETS | | | | | | | Cash | | \$ | 591
,264 | | | Accounts receivable | | | 1,443,329 | | | Commissions receivable | | | 91 ,477 | | | Investments | | | 92,736 | | | Prepaid expenses | | | 85,422 | | | Deposit held by clearing organization | | | 150,071 | | | Due from related parties | | | 362,751 | | | Operating lease asset (net) | | | 1,055,132 | | | | TOT AL ASSETS | | 3,872,182 | | | | | | \$3,872,182 | | | | | | | ### LIABILITIES AND MEMBER'S EQUITY | LIABILITIES | | | |---------------------------|-------------------|---------------| | Accounts payable | | \$
370,670 | | Operating lease liability | | 1,156,042 | | | TOTAL LIABILITIES | 1,526,712 | | | | | | | | | | MEMBER'S EQUITY | | | | Member's equity | | 2,345,470 | | | | | | | | \$3,872,182 | {6}------------------------------------------------ #### HEIGHT SECURITIES, LLC #### December 31 , 2023 # NOTE A - SIGNIFICANT ACCOUNTING POLICIES Height Securities, LLC (the Company), a wholly owned subsidiary of Height Capital, LLC (the Parent), was organized in the state of Delaware in May of 2009. The Company is a registered broker-dealer with the Securities and Exchange Commission (the "SEC") and has been a member of the Financial Industry Regulatory Authority ("FINRA") since April of 20 l 0. The Company does not maintain custody of client accounts or hold securities. Securities are held by third parties, and transactions are cleared through a clearing organization, Pershing, LLC ("Pershing"), or Goldman Sachs Execution & Clearing, LP ("Goldman"), and its direct placement partners. The Company qualifies for exemption under Rule 15c3-3(k)(2)(ii) from the Securities and Exchange Commission Customer Protection Rule (Rule 15c3-3). Accordingly, the supplemental schedule of Information Relating to Possession or Control Requirements for Brokers and Dealers Pursuant to Rule l 5c3-3 is not applicable. # Basis of Accounting The Company uses accrual basis accounting for financial statement purposes, recognizing income when earned and expenses when incurred. # Cash and Cash Equivalents Cash, as used in the accompanying financial statements, includes currency on hand, demand deposits with financial institutions and short-term, highly liquid investments purchased with a maturity of three months or less. ## Investments The Company owns common stock in NextDecade Corporation. Fair market value for this investment for the year ended December 31 , 2023 is \$2,385. The Company also owns common stock, warrants, and convertible notes in North Sea Natural Resources Limited, of which the stock and warrants are nonmarketable. Common stock for this investment is recorded at fair value, which we calculate to be 40% of cost, warrants at 85% of cost, and convertible notes at cost, \$28,978, \$37,320, and \$24,053 respectively, as of December 31 , 2023. # Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ### NOTE B - INCOME TAXES No provision for income taxes has been provided in these statements, as the Parent, by agreement, is responsible for any tax liability of the consolidated group. The Parent has elected, under the Internal Revenue Code, to be taxed as a partnership. Accordingly, no provision has been made for Federal and State income taxes on income recognized. {7}------------------------------------------------ #### HEIGHT SECURITIES, LLC #### December 31 , 2023 # NOTE B - INCOME TAXES (continued) The Company operates as a Limited Liability Company (LLC) and is not subject to Federal income taxes. Management has evaluated tax positions that could have a significant effect on the financial statements and determined that the Company had no uncertain tax positions at December 31, 2023, which required disclosing or recognition. Generally, the Parent's tax years remain open and subject to examination for three years by U.S. taxing authorities and four years for state income tax examinations. # NOTE C - CLEARING AGENTS The Company has a fully disclosed clearing agreement with Pershing, LLC as a clearing agent. Either party may terminate the agreement with 60 days written notice. Pershing requires an escrow deposit of \$150,000, subject to change at the discretion of Pershing. The balance in the deposit at December 31 , 2023 includes \$71 of accrued interest. The Company also has a fully disclosed clearing agreement with Goldman Sachs Execution & Clearing, LP. Either party may terminate the agreement upon 30 days' written notice. Goldman does not require a deposit for its services. #### NOTED - LIABILITIES SUBORDINATED TO GENERAL CREDITORS The Company had no liabilities that were subordinated to general creditors at December 31 , 2023. # NOTE E - RELATED PARTY TRANSACTIONS The Company is a wholly owned subsidiary of Height Capital, LLC, which also owns Height Analytics, LLC, Height Ventures, LLC, and Height Consulting, LLC. The Company, Height Analytics, LLC and Height Capital, LLC have an expense sharing agreement for all operating expenses. Expenses paid by Height Analytics, LLC that benefit the Company and Height Capital, LLC are allocated to each company in proportion to an expense allocation based on certain annually defined parameters, including, but not limited to, per capita, square footage used, and vender billing subtotal allocations. Conversely expenses that are paid by the Company are also allocated to Height Analytics, and Height Capital, LLC based on the same allocation methods. Those allocations are then reimbursed to the representative company owed, generally on a monthly basis. These expenses include, but are not limited to, administrative expense, professional fees, travel and business development, and information technology and computer expenses. As outlined in the agreement, the monthly allocation will be kept on record. The amount the Company is owed from Height Analytics, LLC at December 31 , 2023 is \$362,751. {8}------------------------------------------------ #### HEIGHT SECURITIES, LLC #### December 31 , 2023 # NOTE F - OFFICE LEASE In February 2016, the Financial Accounting Standards Board, ("FASB"), issued Accounting Standards Update, ("ASU"), No. 2016-02, Leases (Topic 842), which establishes a comprehensive new lease accounting model. The new standard: ( a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and ( c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a leaseterm of more than 12 months. The new standard is effective for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, including a number of optional practical expedients that entities may elect to apply. In July 2018, the FASB issued ASU No. 2018-11 , Leases (Topic 842): Targeted Improvements, an update which provides another transition method, in addition to the existing modified retrospective transition method, by allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted Topic 842 effective January 1, 2019 using a modified retrospective method. The Company moved into a new office space for which it recorded a right-to-use asset and corresponding lease liability of approximately \$1.3 million on the Company's balance sheet, utilizing a discount rate of 0.0115%. As of the year ended December 31, 2023 the net Operating lease asset was \$1,055,132 and the Operating lease liability was \$1,156,042. # NOTE G - CONCENTRATIONS OF CREDIT **RISK** Financial instruments that potentially subject the Company to concentrations of credit risk consist of the receivable from the clearing organization and cash and cash equivalents. The Company grants credit terms in the normal course of business to its clearing brokers for payment of commissions for customer trades. As part of its ongoing procedures, the Company monitors the credit worthiness of its clearing broker. The Company maintains cash in bank deposit accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Management believes the Company is not exposed to any significant risk related to cash. As of December 31 , 2023 the Company had balances in excess of insured limits totaling \$341 ,264. ### NOTE H - FAIR VALUE MEASUREMENTS FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure requirements for fair value measurements. F ASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: {9}------------------------------------------------ #### HEIGHT SECURITIES, LLC #### December 31 , 2023 ### NOTE H - FAIR VALUE MEASUREMENTS ( continued) Level 1 - Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets accessible by the Company at the measurement date. Level 2 - Valuations based on inputs that are observable in the marketplace other than those inputs classified as Level 1. Level 3 - Valuations based on inputs that are unobservable in the marketplace and significant to the valuation. The following table presents the Company's assets and related valuation inputs within the fair value hierarchy utilized to measure fair value as of December 31 , 2023, on a recurring basis: | | Level 1 | Level 2 | Level 3 | Total | |--------------|---------|---------|----------|----------| | Common Stock | | \$ | \$90 351 | \$92 736 | NOTE I - Subsequent Events These financial statements were approved by management and available for issuance on the date of the Independent Registered Public Accounting Firm report. Subsequent events have been evaluated through this date. There were no subsequent events requiring disclosures and/or adjustments. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.