# TAP SECURITIES LLC X-17A-5 (2024-02-29) — Broker-dealer annual report - Company: TAP SECURITIES LLC - Form: X-17A-5 - Filed: 2024-02-29 - Period: 2023-12-31 - Accession: 0001471744-24-000001 - CIK: 1471744 - File #: 8-68381 - Type: Broker-dealer - 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/1471744/000147174424000001/tap23s2.pdf --- {0}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION December 31, 2023 With Report of Independent Registered Public Accounting Firm {1}------------------------------------------------ ### UNJTED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL REPORTS FORM X-17A-5 PART III FACING PAGE Information Requ ired Pursuant to Rules l ?a-S, 17:i-12, and 18a-7 under the Secu rities Exchange Act of I 934 | (Name) | (Area Code - Telephone Number) | (Email Address) | |--------------------------------------------------|----------------------------------------------------------------------------------------------|-----------------------------------------| | Howard Spindel | (212) 897-1688 | hspindel@integrated.so1utions | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | (City) | (State) | (Zip Code) | | New York | NY | 10153 | | | (No. and Street) | | | 767 FIFTH AVENUE, | FL 18 | | | | ADDRESS OF PRINClPAL PLACE OF BUSINESS: (Do not t1 | se a P.O. box no.) | | ~ Broker-dealer | D Security-based swap dealer
D Check here if respondent is also an OTC derivatives dealer | D Major security-based swap participant | | TYPE OF REGISTRANT (check all applicable boxes): | | | | NAME OF FIRM: | | | | ___ | _ T_A_P_S_E_C_U_R_IT_IE_S_LL_C | _________
_ | | | A. REGISTRANT IDENTIFICATION | | | | MM/DD/YY | MM/DD/YY | | | FILING FOR THE PERIOD BEGINNING 01/01/23 | AND ENDING 12/31 /23 | | | (Name- if individual, state last, first, and middle name) | | | |-------------------------------|-----------------------------------------------------------|---------|------------| | 200 Jefferson Park, Suite 400 | Whippany | NJ | 07981 | | (Address) | (City) | (State) | (Zip Code) | | | | | | (Date of Regii,trntion w ith PCAOB)(if applicable) (PCAOB Registration Number, ifapplicable) 0MB APPROVAL 0MB Number· 3235·0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 > SEC FILE NUMER 8- 68381 #### FOR OFFICIAL USE ONLY \* Claims for e.xcmplion from the requirement that lhe annual reports be covered by the reports of an independent public accountant must be sopported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240. I 7a-5(c)( I )(ii), if applicable. Persons who :\re 10 rc~pond to thccolleclion ofinfo nnation contained in this form arc not required to respond unless the form llis1,1ays a currcntl)· , :llit.l Oi\lD control number. {2}------------------------------------------------ ## AFFIRMATION I, F. Davis Terry Jr , swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to TAP SECURITIES LLC as of 12/31/23 , 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. Signature 1llir *[p \_ fN~t~* Title {3}------------------------------------------------ ## This filing\*\* contains (check all applicable boxes): - CEI (a) Statement of financial condition. - [El (b) Notes to unconsolidated or consolidated statement offinancial condition, as applicable. - o (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 members' or sole proprietor's equity, as applicable. - D (t) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to unconsolidated or consolidated financial statements,, as applicable. - o (h) Computation of net ca pital 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 G) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (k) Computation fo r 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 (l) Computation for Determination of PAB 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 240.15c3-l, 17 CFR 240.18a-l, 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. - CEI (q) Oath or affirmation in accordance with 17 CFR 240. l 7a-S, 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. - CEI (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-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 (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-le 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 fifing, see 17 CFR 240.17a-5{e)(3) or 17 CFR 240.18a- 7{d)(2), as applicable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member and Those Charged With Governance of TAP Securities LLC ### Opinion on ti' e Financial **Statement** We have audited the accompanying statement of financial condition of TAP Securities LLC (the "Company"), as of December 31 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 December 31 , 2023, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Op ,ion 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 .Jud1t 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 miss atement 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 serv'c!d as the Company's auditor since 2015 *Ni~ <* ~ r/.1 *L 13u~,* j-Jc\_ New York, New York February 29, 2024 {5}------------------------------------------------ ## **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023** **Assets** Cash \$ 1,427,484 ## **Liabilities and Member's Capital** | Total liabilities and member's capital | \$
1,427,484 | |----------------------------------------|-----------------| | Member's capital | 1,172,484 | | Liabilities:
DeferrcJ revenue | \$
255,000 | {6}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENT DECEMBER 3 1, 2023** #### **Note** I - **Organi7a tion and nature of business** TAP Securities LLC (the ·'Company"), is a limited liability company that provides investment banking. lii,ancial and related advisory services 10 various clients. The Company is a broker-dealer registered ,, ith the Securities and Exchange Commission (""SEC") and is a member of Financial Industry Regulatory Authority. The Compan) is 100% owned by TAP Advisors LLC (the ·'Parenf'). #### Note 2 - Sum nm rv of significant accounting policies ## Basis of accounting and use of estimates Th1:sc financial statements have been prepared in conformity with accounting principles generally accepted in he United States of America ("GAAP") which requires management to make estimates and assumption~ 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 reportinr, period. Actual results could differ from these estimates. #### Ac~l)Unts receivable and contract balances Accounts receivable arise when the Company has an unconditional right to receive payment under a contract "ith a customer and arc derecognized when the cash is received. Contract assets arise when the revenue associated \\ith 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 derccognized when either it becomes a receivable or the cash is received. Contract liabilities arise wben customers remit contractual cash payments in advance of the Company satisfying its performance obligations under the contract and are derecoi:nized when the revenue associated with the contract is recognized when the performance obligation is satisfied. The Company evaluates collectability of its accounts receivable and determines if an allowan\.'.c for uncollectible accounts is necessary based on historical payment information or known customer financia l concerns. There was \$1.215,000 outstanding accounts receivable at January 1, 2023 and \$0 at I) cember 31. 2023. There were no contract assets as of January I. 2023 or December 31. 2023. There,, as~ 15.000 in deferred revenue al January I. 2023 and \$255,000 at December 31, 2023. #### Allowance for credit losses A~( fopic 326. Financial Instruments-Credit Losses ("ASC 326"') impacts the impainnent model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected crl!dit losses over the entire life of the financial asset. Under ASC 326, the Company could determine then: .ire no expected credit losses in certain circumstances (e.g .. based on the credit quality of the client). The allowance for credit losses is based on the Company's expectation of the collectability of financial i11. ,irun11;mts. including fees and other receivables utilizing the CECL framework. The Company considers f.ictors such as historical experience. credit quality, age of balances and current and future economic rnnditions that may affect the Company"s expectation of the collectabili ty in determining the allowance fur credit losses. Under the standard, the allowance for credit losses must be deducted from the amortized t. st 01 the financial asset to present the net amount expected to be collected. {7}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2023 ## Note 2 - Summary of significa nt accounting policies (continued) #### Allowance for credit losses {continued) The statement of operations would renect the measurement of credit losses for newly recognized financial assets as well as the expected increases or decreases of expected credit losses that might have taken place during the period. The Company has not provided an allowance for credit losses at December 3 L 2023. #### Liq uid it, As sho\\ n in the accompanying financial statements. the Company generated net income of \$3,853.585 during the year ended December 31, 2023. As of December 31, 2023, the Company's available cash was \$1 .427.484 and liabilities were \$255.000. Management has evaluated these conditions and determined that since the Compan) has historically relied on its Parent to meet its cash tlov. requirements (through f'orgiw ness or intercompany debt when and if necessary). this is sufficient to alleviate the unce11aint) created by these conditions. In connection with the Company's assessment of going concern considerati,ns in accordance with FAS B'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 Com pan) through one year from the issuance of these financial statements. ### Income tnxes Sim:c the Compan) is a single member limited liabilit) company. it is disregarded for income tax purposes and. therefore. no income taxes are provided or considered for the purpose of the financial statements. lhe results of the Company are included in the New York City Unincorporated Business Tax return of ih Parent. In accordance with GAAP. the Company is required to determine whether a tax position of the Company b more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The ta\ benefit Lo be recognized is measured as the largest amount of benefit that is more likely than not of being realized upon ultimate selllement. Derecognition of a tax benefit previously recognized could result ·11 the Compan) recording a ta, liability that would reduce member's capital. This policy also provides guidance on thresholds, measurement, derecognition, classification, interest and penalties. disclosure . • tnd transition that is intended to provide better financial statement comparability among different en itic Based on its analysis. the Company has determined that there are no uncertain tax positions that miuld require financial statement recognition as of December 31, 2023. #### **Note 3** - Conccnl rations Financial instruments that potentially subject the Company to concentrations of credit risk consist principal!) tif cash. The carrying value of cash approximates fair value due to its short-term nature. 89.5% or the revenue was earned from three customers. The C@1pan) maintains its cash balance at one financial institution which throughout the year regular!) C\t.:Ceds the federally insured limit of \$250.000. {8}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENT DECEMBER 31 , 2023** #### **Note 4** - **Rcgulatorv requirements** The Company is subject to the SEC Uniform Net Capital Rule (Rule I 5c3-1 ), 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 l. At December 31. 2023, the Company had net capital of \$1,172,484. which was \$1,072,484 in excess of its required net capital of \$100,000. #### **Note 5** - **Related party transactions** Pursuant to an annually renewable expense sharing agreement (the "Agreement"), the Parent provides substantially all operational and administrative services and facilities to the Company. The fees charged by the Parent and agreed to by the parties totaled \$14.097,407 for the year ended December 31, 2023. This amount includes \$6,730,000 representing principally office and administrative services and payroll; the balance represents management fees that are determined from time to time at the discretion and mutual agreement of the Company and its Parent. The Company regularly reimburses its Parent for these expenses un less its Parent forgives the indebtedness that the Company might owe to the Parent. During the year ended December 31, 2023, the Parent forgave \$4,6 15,378 that was owed to it by the Company. Such forgiveness was treated as capital contributions to the Company. These financial statements do not necessarily reflect the results of operations and financial condition that would have been the result of dealing with unrelated entities. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.