# TAP SECURITIES LLC X-17A-5 (2020-02-28) — Broker-dealer annual report - Company: TAP SECURITIES LLC - Form: X-17A-5 - Filed: 2020-02-28 - Period: 2019-12-31 - Accession: 0001471744-20-000001 - CIK: 1471744 - File #: 8-68381 - Material weakness: No - Auditor: WithumSmith & Brown, PC - Auditor location: Whippany, NJ - Contact: Howard Spindel - Phone: 212-897-1688 - Signed by: F. Davis Terry Jr. (Co President) Original filing: https://www.sec.gov/Archives/edgar/data/1471744/000147174420000001/tp19s.pdf --- {0}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION December 31 , 2019 With Report of Independent Registered Public Accounting Firm {1}------------------------------------------------ | UNITED STATES | |------------------------------------| | SECURITIES AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | | | OMB APPROVAL | | | |-------------|----------------|--------------------------|--| | OMB Number: | | 3235-0123 | | | | | Expires: August 30, 2020 | | | | | Estimated average burden | | | | | hours per response 12.00 | | | | SEC FLE NUMBER | | | | | 8 - | 68381 | | | | | | | # ANNUAL AUDITED REPORT FORM X-17A-5 PART III # FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | 1/1/2019 | AND ENDING | 12/31/2019 | | | |--------------------|-------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--| | MM/DD/YY | | MM/DD/YY | | | | | | | | | | | | | | | | | | OFFICIAL USE ONLY | | | | TAP SECURITIES LLC | | | | | | | | | | | | | | | | | | | | | | | | | New York | 10022 | | | | | (State) | (Zip Code) | | | | | | | | | | | | 212-897-1688 | | | | | | (Area Code -- Telephone No.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Whippany | NJ | 07981 | | | | (City) | (State) | (Lip Code) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (No. and Street)
WithumSmith+Brown, PC | A. REGISTRANT IDENTIFICATION
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
( Name -- if individual, state last, first, middle name )
Accountant not resident in United States or any of its possessions
FOR OFFICIAL USE ONL Y | | | \*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant nust be supported by a statement of facts and circumstances relied on as the basis for the exemption. See section 240.17a-5(e)(2). SEC 1410 (06-02) Potential 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 OMB control number. {2}------------------------------------------------ ### AFFIRMATION I. F. Davis Terry Jr., affirm that, to the best of my knowledge and belief, the accompanying financial statement(s) and supplemental schedule(s) pertaining to TAP Securities LLC for the year ended December 31, 2019, are true and correct. I further affirm that neither the Company nor any officer or director has any proprietary interest in any account classified solely as that of a customer. Signature CO - Treside Title Notary Public ![](_page_2_Picture_7.jpeg) {3}------------------------------------------------ ### **This report \*\* contains (check all applicable boxes):** - [x] Report of Independent Registered Public Accounting Firm. - [ x] Facing Page. - [x] Statement of Financial Condition. - [ ] Statement of Operations. - [ ] Statement of Changes in Member's Equity. - [ ] Statement of Cash flows. - [ ] Statement of Changes in Liabilities Subordinated to Claims of General Creditors (not applicable). - [ ] Computation of Net Capital for Brokers and Dealers Pursuant to Rule I 5c3-l under the Securities Exchange Act of 1934. - [ ] Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule I 5c3-3 under the Securities Exchange Act of 1934. - [ ] Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule I 5c3-3 under the Securities Exchange Act of 1934 (not applicable). - [ ] **A** Reconciliation. including appropriate explanations, of the Computation of Net Capital Pursuant to Rule I Sc3- I and the Computation for Determination of Reserve Requirements Under Rule 1Sc3-3. - [ ] **A** Reconciliation Between the Audited and Unaudited Statements of Financial Condition With Respect to Methods of Consolidation (not applicable). - [x] An Oath or Affirmation. - [ ] A copy of the SIPC Supplemental Report. - [ ] A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit (Supplemental Report on Internal Control). - [ ] Independent Auditors' Report on Internal Control Required by SEC Rule 17a-S(g)(I). - [ ] Independent Auditors' Report Regarding Rule I Sc3-3 Exemption. - [ ] Rule I 5c3-3 Exemption Report {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Management and Member of TAP Securities LLC ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of TAP Securities LLC (the "Company"), as of December 31 , 2019, 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 December 31 , 2019, in conformity with accounting principles generally accepted in the United States of America ### **Basis for Opinion** This financial statement is the responsibility of the Company'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 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 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 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 2015. February 26, 2020 {5}------------------------------------------------ ## **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019** #### **Assets** | Cash | \$
325,248 | |----------------------------------------|---------------| | Liabilities and Member's Capital | | | Liabilities: | | | Due to parent company | \$
115,000 | | Member's capital | 210,248 | | Total liabilities and member's capital | \$
325,248 | {6}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENT DECEMBER 31 , 2019** #### **Note 1** - **Organization and nature of business** TAP Securities LLC (the "Company''). is a limited liability company that provides investment banking, financial and related advisory services to various clients. The Company is a broker-dealer registered with the Securities and Exchange Commission ("'SEC") and is a member of Financial Industry Regulatory Authority. The Company is 100% owned b, TAP Advisors LLC (the ·'Parent""). #### **Note 2** - **Summa ry o f significant accounting policies** ### Basis of accounting and use of estimates These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("'GAAP'.) which 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 these estimates. #### Liquidity As shown in the accompanying financial statements, the Company incurred a net loss of\$3,655,009 during the year ended December 31. 2019. As of December 31. 2019. the Company's available cash was \$325,248 and liabilities were \$ 11 5,000. Management has evaluated these conditions and determined that since the Company has historically relied on its Parent to meet its cash flow requirements (through forgiveness of intercompany debt), this is sufficient to alleviate the uncertainty created by these conditions. In connection with the Company's assessment of going concern considerations in accordance with F ASB's Accounting Standards Update ("ASU") 2014-15, "Disclosures of Uncertainties about an Entity's Ability to Continue as a Going Concern," management has determined that the Company has access to funds from the Parent that are sufficient to fund the working capital needs of the Company through one year from the issuance of these financial statements. #### Accounts receivable and contract balances Accounts receivable arise when the Company has an unconditional right to receive payment under a contract with a customer and are derecognized when the cash is received. Contract assets arise when the revenue associated with the contract is recognized prior to the Company's unconditional right to receive payment under a contract with a customer (i.e., unbilled receivable) and are derecognized when either it becomes a receivable or the cash is received. Contract liabilities arise when customers remit contractual cash payments in advance of the Company satisfying its performance obligations under the contract and are derccognized when the revenue associated with the c.;ontract is recognized when the performance obligation is satisfied. The Company evaluates collectability of its accounts receivable and determines if an allowance for uncollectible accounts is necessary based on historical payment information or known customer financial concerns. There were no outstanding accounts receivable at January I, 2019 or December 31, 2019. There were no contract assets as of January I. 2019 or December 31, 2019. There were no contract liabilities as of January I, 2019 or December 31, 2019. {7}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENT DECEMBER 31 , 2019** ### **Note 2** - **Summary of significant accounting policies (continued)** #### Income taxes Since the Company is a single member limited liability company, it is disregarded for income tax purposes and, therefore, no income taxes are provided or considered for the purpose of the financial statements. The results of the Company are included in the New York City Unincorporated Business Tax return of its Parent. ln accordance with