# SHARENETT SECURITIES LLC X-17A-5 (2025-03-07) — Broker-dealer annual report - Company: SHARENETT SECURITIES LLC - Form: X-17A-5 - Filed: 2025-03-07 - Period: 2024-12-31 - Accession: 0001468209-25-000001 - CIK: 1468209 - File #: 8-68326 - Type: Broker-dealer - Material weakness: No - Auditor: TUTTLE & BOND, PLLC - Auditor location: FREDRICKSBURG, TX - Contact: PETER DOLEZAL - Phone: 917-902-6984 - Email: pdolezal@sharenett.com - Website: sharenett.com - Signed by: PETER DOLEZAL (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1468209/000146820925000001/sharenettaudit24.pdf --- {0}------------------------------------------------ ### **UNITED STATES 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 > SEC FILE NUMBER 8-68326 ## **ANNUAL REPORTS FORM X-17A-5 PART Ill** **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING --------- | 01/01/24 | AND ENDING ----------
12/31/24 | |-------------------------------------------|------------|-----------------------------------| | | MM/DD/ Y Y | MM/DD/VY | **A. REGISTRANT IDENTIFICATION** ### NAME OF FIRM: SHARENETT SECURITIES LLC TYPE OF REGISTRANT (check all applicable boxes): IX! 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.) 575 Fifth Avenue, Suite 17-119 | (No. and Street) | | | |-------------------------------------------------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | New York | | 10017 | | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | (917) 902-6984 | | pdolezal@sharenett.com | | (Area Code - Telephone Number) | | | | | | | | | | | | Fredricksburg | Texas | 78624 | | (City) | (State) | (Zip Code) | | | 6543 | | | mate of Registration with PCAOB)(if applicable) | | | | FOR OFFICIAL USE ONLY | | | | | | (Email Address)
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Name -- if individual, state last, first, and middle name)
( PCAO B Registration Number, if a pplicable) 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-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 0MB control number.** {1}------------------------------------------------ ### **OATH OR AFFIRMATION** | I, Peter Dolezal | swear (or affirm) that, to the best of my knowledge and belief, the | |---------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | financial report pertaining to the firm of ShareNett Securities LLC | as of | | 31 December
2024 | ,is true and correct. I further swear (or affirm) that neither the company nor any | | as that of a customer. | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | --d
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r3 | CEO | ### Title: CEO # Notary Pubep\ar 7.036 ### **This filing contains (check all applicable boxes):** - X (a) Statement of financial condition. - D (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).** - Cl (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. - □ U) 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. - D (I) Computation for Determination of PAB Requirements under Exhibit A t o§ 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. - □ (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. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - !XI (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 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. - [ (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-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.* {2}------------------------------------------------ ### SHARENETT SECURITIES LLC Financial Statements and Supplementary Schedules Pursuant to Rule 17 A-5 under the Securities Exchange Act of 1934 DECEMBER 3 1, 2024 Report of Independent Registered Public Accounting Firm {3}------------------------------------------------ ### **SHARENETT SECURITIES LLC Financial Statements for the Year Ended December 31,2024 Table of Contents** | Report of Independent Registered Public Accounting Firm Financial Statements | 2 | |------------------------------------------------------------------------------|---| | Statement of Financial Condition | 3 | | Notes to Financial Statements | 4 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Sharenett Securities LLC ### **Opinion on The Financial Statements** We have audited the accompanying statement of financial condition of Sharenett Securities LLC (the "Company") as of December 31, 2024, and the related statements of operations, member's equity and cash flows for the year then ended, including the related notes ( collectively referred to as "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, 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** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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 of these financial statements 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 from 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 audits, 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. Giddings, Texas March 6, 2025 {5}------------------------------------------------ ### **SHARENETT SECURITIES LLC STATEMENT OF FINANCIAL CONDITION December 3 1, 2024** | | 12/31/2024 | 12/31/2023
Restated | |---------------------------------------------|------------|------------------------| | ASSETS | | | | Cash and cash equivalents | \$298,427 | 627,781 | | Prepaid expenses and other assets | 36 291 | 27,920 | | Total assets | 334 718 | 655.701 | | Liabilities And Member's Equity Liabilities | | | | Accounts Payable and Accrued Expenses | \$1,435. | 122,470 | | Total Liabilities | 1.435 | 122.470 | | Member's Equity | 333,283 | 533,231 | | Total Liabilities and Member's Equity | 334 718. | 655 701 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ### **SHARENETT SECURITIES LLC NOTES TO FINANCIAL STATEMENTS** ### **December 31, 2024** ### NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES **Nature of Business:** Sharenett Securities LLC (the "Company"). is a securities broker-dealer registered with the Securities and Exchange Commission ("SEC"), a member of the Financial Industry Regulatory Authority ("FINRA"), and a member of the Securities Investor Protection Corporation ("SIPC"). The Company is a Delaware limited liability company (LLC) and a wholly owned subsidiary of Sharenett Holdings LLC (the "Parent" and sole member}. The Company operates as a placement agent specializing in private placements of securities and financial advisory services. Pursuant to Footnote 74 of SEC Release No. 34-70073, the Company does not carry accounts of or for customers, does not receive customer funds or securities, or self-clear customer transactions through a separate account and does not receive or hold funds or securities for customers, either directly or indirectly or otherwise owe such funds and securities to customers. Accordingly, the Company relies on Footnote 74. **Basis of Presentation:** The accompanying financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States ("GAAP"). **Cash and cash equivalents:** For the purposes of reporting the statement of cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash balances more than FDIC and similar insurance coverage are subject to the usual banking risks associated with funds in excess of those limits. As of December 31, 2024, the Company had \$48,427 in excess of the FDIC limit of \$250,000. **Use of Estimates:** The preparation of financial statements in accordance with accounting principles generally accepted 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. **Accounts Receivable:** The Company carries accounts receivable on a gross basis with no discounting for bad debts. It is management's policy to review the trade accounts annually for collectability. There is no collateral held by the Company for accounts receivable. Interest is not accrued on accounts receivable **Income taxes:** The Company, with the consent of its member, has elected under the Internal Revenue Code to be a Limited Liability Company for both federal and state income tax purposes. In lieu of corporation income taxes, the members of a Limited Liability Company are taxed on their proportionate share of the Company's taxable income. Therefore, no provision or liability for federal or state income taxes has been included in the financial statements. The Company has adopted the provisions of FASB Accounting Standards Codification 740-10, Accounting for Uncertainly in Income Taxes. Under ASC 740-10, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position included in an entity's status, including its status as a pass-through entity, and the decision not to file a tax return. The Company has evaluated each of its tax positions and has determined that no provision or liability for income taxes is necessary. The members and the Company are generally not subject to U.S. federal, state, or local income tax examinations related to the Company's activities for tax years before 2019. {7}------------------------------------------------ ### NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ### **Revenue from contracts with customers:** ### *Revenue Recognition* The Company adopted ASU 2014-09, Revenue from Contracts with Customers, (codified in ASC 606). The Company recognizes revenue when services are transferred to clients. Revenue is recognized based on the amount of consideration that management expects to receive in exchange for these services in accordance with the terms of the contract with the client. To determine the amount and timing of revenue recognition, the Company must (1) identify the contract with the client, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when the Company satisfies a performance obligation. ### *Significant Judgements* Revenue from contracts with customers includes placement fees, retainer income, and consulting income. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. #### *Revenue from contracts with customers:* The Company provides placement services related to capital raising activities. Revenue for placement services is generally recognized at the point in time that performance under the agreement is completed (the closing date of transaction) or the contract is cancelled. In some circumstances, significant judgement is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers received from customers are nonrefundable and recognized upon execution of the contract. Consulting income received from customers are recognized at a point in time when the services are completed. **Fair value of financial instruments:** All the Company's financial assets and liabilities are carried at market value or at amounts, which, because of their short-term nature, approximate current fair value. ### NOTE B - NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3 1 ), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2024, the Company had net capital of \$298,427 which was \$48,427 more than its required net capital of \$250,000 and the ratio of aggregate indebtedness to net capital was Oto 1.0. ### NOTE C - RELATED PARTY TRANSACTIONS During 2024 the Company had an expense sharing agreement ("ESA") in place with its Parent as it relates to rent, technology, communication and personnel services provided by the Parent. The Company's expenses, pursuant to the terms of the ESA for the year ended December 31, 2024, was \$146,475. ### NOTED - BUSINESS CONCENTRATIONS On December 31, 2024, the firm did not have any material revenue for the year ended. {8}------------------------------------------------ ### NOTE E - COMMITMENTS AND CONTINGENCIES Contingent liabilities arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that liabilities can be assessed, and the amount of the assessment and/or remediation can be reasonably estimated. ### NOTEF-SUBSEQUENTEVENTS The Company has evaluated subsequent events through the date which the financial statements were available to be issued and has determined that the Company had one event occurring subsequent to December 31, 2024, requiring disclosure. On Friday, February 21, 2025, the parent company made a capital contribution of \$80,000US to be utilized toward operating capital of the BO. Note G-Prior Period Adjustments During the current fiscal year ending 12/31/2024, the Company mistakenly wrote off commission expenses related to the prior years ended 12/31/2023 and 12/31/2022 for amounts equal to \$15,225 and \$36,036 respectively. This was corrected for the fiscal year ended 12/31/2024, and the effect of the error is shown in the table below and restated on the face of the report for the fiscal year ended 12/31/202, whereby 2022 was included in retained earnings for the fiscal year ended 12/31/2022. | | 12/312023. | 12/31/2022 | |---------------------|------------|------------| | Commission Expense. | \$_36,036 | \$ 15,225 | | | | | 12/31/2023 Accounts Payable Commission Expense Retained Earnings 12/31/2023+ 12/31/22 = 51,261 12/31/2023 12/31/2022 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.