# INDEPENDENT BROKERAGE SOLUTIONS LLC X-17A-5 (2022-02-25) — Broker-dealer annual report - Company: INDEPENDENT BROKERAGE SOLUTIONS LLC - Form: X-17A-5 - Filed: 2022-02-25 - Period: 2021-12-31 - Accession: 0001488377-22-000001 - CIK: 1488377 - File #: 8-68549 - Type: Broker-dealer - Material weakness: No - Auditor: YSL & Associates LLC - Auditor location: New York, NY - Contact: Bryon Lyons - Phone: 212-751-4424 - Email: blyons@indiebrokers.com - Website: indiebrokers.com - Signed by: Bryon Lyons (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1488377/000148837722000001/indiebrokersshort.pdf --- {0}------------------------------------------------ # Independent Brokerage Solutions LLC Statement of Financial Condition As of December 31, 2021 {1}------------------------------------------------ | | UNITED STATES | | | | | | |-------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|--------------------------------------------------------|----------------------------------------------------|-----------------------|--------------------------------------------|--| | SECURITIES AND EXCHANGE COMMISSION | | | | 0MB APPROVAL | | | | | | | | 0MB Number: 3235-0123 | | | | Washington, D.C. 20549 | | | Expires: Oct. 31, 2023
Estimated average burden | | | | | | | | hours per response: 12 | | | | | | ANNUAL REPORTS | | | | | | | FORM X-17A-S | | | | | SEC FILE NUMBER | | | | | | | | | | | | PART Ill | | | | 8-68549 | | | | | FACING PAGE | | | | | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | | REPORT FOR THE PERIOD BEGINNING | 01/01/
2021 | AND ENDING | 12/31/2021 | | | | | | MM/DD/VY | | MM/DD/VY | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF FIRM: Independent Brokerage Solutions, LLC | | | | | | | | | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | | | | 129Broker-dealer | OSecurity-based swap dealer | | DMajor security-based swap participant | | | | | | D Check here if respondent is also an OTC derivatives dealer | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | | 485 Madison Avenue - 15 Floor | | | | | | | | | | (No. and Street) | | | | | | New York | | NY | | | 10022 | | | (City) | | (State) | | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | Bryon Lyons | 212-751-4424 | | | | Blyons@indiebrokers.com | | | (Name} | (Area Code - Telephone Number} | | | (Email Address} | | | | | | | | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in t | | | his filing* | | | | | YSL & Associates LLC - Suite 700 | | | | | | | | | | (Name - if individual, state last, first, middle name} | | | | | | 11 Broadway | New York | | NY | | 10004 | | | (Address) | (City) | | (State) | | (Zip Code) | | | 06/ 06/2006 | | | | | 2699 | | | (Date of Registration with PCAOB)(if applicable) | | | | | (PCAOB Registration Number, if applicable) | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | **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.** {2}------------------------------------------------ ### **OATH OR AFFIRMATION** I, Bryon Lyons, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Independent Brokerage Solutions, LLC, as of December 31, 2021, 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 ~ **07./?.3/,..JY1.'2.** ![](_page_2_Figure_2.jpeg) **Mid.di~** Notary Public ### **E"xp,res MQ..tc1' Ob, 2..0'2.(:. This filing•• contains (check all applicable boxes):** I - **181**(a) Statement of financial condition. - 181 (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 (f) 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 240.1Sc3-1 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 240.1Sc3-3. - 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 (1) 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 240.1Sc3-3. - 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) Reconcillatlons, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-l, 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. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - 181 (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-S or 17 CFR 240.18a-7, as applicable. - l8I (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-S or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17!3-12, 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 applicable. {3}------------------------------------------------ ## **INDEPENDENT BROKERAGE SOLUTIONS LLC Contents December 31, 2021** ### **Page(s)** | Report of Independent Registered Public Accounting Firm 1 | | |------------------------------------------------------------|--| | Statement of Financial Condition 2 | | | Notes to Financial Statement 3-8 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 11 Broadway, Suite 700, New York, NY 10004 Tel: (212) 232-0122 Fax: (646)218-4682 ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Independent Brokerage Solutions LLC ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Independent Brokerage Solutions LLC (the "Company'') as of December 31, 202 l , 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, 2021 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 the Company'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 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 !YOcedures 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 fmancial statement We believe that our audit provides a reasonable basis for our opinion. We have served as Independent Brokerage Solutions LLC's auditor since 2016. NewYork,NY February 24, 2022 {5}------------------------------------------------ # **INDEPENDENT BROKERAGE SOLUTIONS LLC Statement of Financial Condition** **As of December 31 , 2021** | Assets | | | |---------------------------------------------|----|-----------| | Cash and cash equivalents | | 878,303 | | Accounts receivable | | 236,871 | | Due from broker | | 52,445 | | lm,estment in securities, at fair value | | 491 | | Prepaid expenses | | 27,067 | | Other assets | | 211,465 | | Total assets | \$ | 1,406,642 | | | | | | Liabilities and Members' Equity | | | | Accounts payable and other accrued expenses | | 249,948 | | Total liabilities | | 249,948 | | | | | | Members' equity | | 1,156,694 | | Total liabilities and members' equity | \$ | 1,406,642 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ## NOTE 1- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Independent Brokerage Solutions LLC (the "Company") was formed in the State of New York in December 2009. The Company changed its name effective May 19, 2020 in response to the requirements of Regulation BI. No other aspect of the Company organization changed. The Company registered with the Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority ("FINRA") on November 3, 2010. The Company is registered in all fifty states, the District of Columbia, Puerto Rico, Guam, and the Virgin Islands. The Company ownership consists of two members. In 2020, the Company issued a non-voting Class B member interest. The Class B member withdrew as of December 31, 2021. The Company is authorized to conduct a business in the Private Placement of securities; act as a Dealer Manager in best efforts distributions of shares in public non-traded REIT securities; conduct a business in exempt Regulation A offerings; and in conjunction with its clearing agent, the Company conducts the following business lines: retailing corporate debt and equity securities, both over-the-counter and through an exchange member; mutual funds; and, U.S. Government securities. The Company may also conduct Investment Advisory Services; the distribution of Third-Party Research; and, General Corporate Advisory and Compliance Consulting Services to other broker dealers, investment advisors, corporate clients, and hedge funds. The Company will continue indefinitely, unless terminated sooner by Management. The Company does not carry securities accounts for customers or perform custodial functions relating to customer securities. The Company introduces all customer accounts on a fully disclosed basis to its clearing agent, Pershing LLC, and maintains a minimum net capital requirement of \$5,000 pursuant to SEC Rule 15c3-l(a)(2)(vi) (the Net Capital Rule). The Company operates pursuant to SEC Rule 15c3-3(k)(2)(ii) (the Customer Protection Rule) and will not hold customer funds or safe keep customer securities. ### Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The company places its cash with high credit quality financial institutions. At times may be in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limit. The Company has not incurred such a loss in the past. ### Revenue Recognition and Account Receivable Revenue is recognized in the period the fees are earned. Securities transactions are recorded on a trade-date basis. The Company earns both securities related commission income for brokerage activities, private placements, investment banking, and referral arrangements, and non-securities related revenue from compliance consulting and corporate advisory engagements. This is in addition to interest income and any gains/losses from investments. Expenses related to registered representatives are typically significant but proportionate in relation to the corresponding income accounts for private placements and corporate advisory commissions due to the fee share arrangements between the Company and each of its registered representatives. its registered representatives. {7}------------------------------------------------ ### NOTE 1 -ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued) ### Revenue Recmmition and Accounts Receivable (continued) Accounts Receivable are reviewed monthly and invoices sent on a 30-day net basis. The Company has not made provisions for bad debt expense or any amount of allowance for uncollectible accounts at year-end since it has determined that there is no need for any write-offs. In 2017 F ASB has adopted ASC 606, Revenue from Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under accounting principles generally accepted in the United States. The core principle of this standard is that revenue should be recognized for the amount of consideration expected to be received for promised goods or services transferred to customers. This standard was effective for the Company for the annual reporting period beginning January 1, 201 8. The Company evaluated the new guidance and the adoption has not had a significant impact on the Company's financial statement. A cumulative effect adjustment under the modified retrospective method of adoption has not been necessary. ### Estimates The preparation of financial statement in conformity with generally accepted accounting principles 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 statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ### Taxes No provision for federal and state income taxes have been made for the Company since, as a limited liability company, the Company is treated as a partnership. The Company's income or loss is reportable by its members on their tax returns. The Company has determjned that there are no uncertain tax positions which require adjustment or disclosure on the financial statement. The tax years that remain subject to examination by taxmg authorities are 2018, 2019, and 2020. The Company is subject to New York City Unincorporated Business Tax, a provision for which is reported on the statement of operations. ### Fair Value Hierarchy F ASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy of fair value inputs. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. {8}------------------------------------------------ #### NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued) ### Fair Value Hierarchy (continued) Valuation techniques that are consistent with the market, income or cost approach, as specified by F ASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: • Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities the Company can access at the measurement date. • Level 2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3. Unobservable inputs for the asset or liability. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The investment of the Company at December 31 , 2021 mainly consists of publicly traded shares categorized as Level 1. #### NOTE 2- NET CAPITAL REQUIREMENT The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule I 5c3 l ), 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 (and the rule of the 'applicable' exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1). At December 31 , 2021, the Company had net capital of \$772,308 which was \$755,645 in excess of its required net capital of \$16,663. The Company's net capital ratio was .32 to 1. {9}------------------------------------------------ #### NOTE 3 - RELATED PARTY TRANSACTIONS The Company bas an agreement with DFP Partners, CPA, P.C. ("DFP Partners"), a related entity, whereby DFP Partners and its affiliate provides certain administrative services and the use of certain office space in connection with the Company's operations. In exchange for these services and office space, the Company is billed a representative allocation of direct expenses based on square footage, human resources and other related factors. At December 31 , 2021, the Company had no balance due to DFP Partners. DFP Partners as the majority owner, also guarantees to provide all necessary capital to the Company, in the event of extraordinary circumstances and the maintenance of adequate net capital. #### NOTE4- SIGNIFICANT GROUP CONCENTRATION OF RISK The Company's policy is to continuously monitor its exposure to market and counterparty risk through the use of a variety of financial, position and credit exposure reporting and control procedures. In addition, the Company has a policy of reviewing the credit standing of each broker-dealer, clearing organization, customer and/or other counterparty with which it conducts business. The Company's two largest customers accounted for approximately 53% of the corporate advisory and private equity placement fee income for 2021. #### NOTE 5 - GUARANTEES F ASB ASC 460, *Guarantees,* requires the Company to disclose information about its obligations under certain guarantee arrangements. F ASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying value (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. The Company has issued no guarantees effective at December 31, 2021 or during the year then ended. #### NOTE6- COMMITMENTS AND CONTINGENT LIABILITIES The Company had no lease or equipment rental commitments, no underwriting commitments, and no contingent liabilities and had not been named as defendant in any lawsuit at December 31 , 2021 or during the year then ended. {10}------------------------------------------------ #### NOTE 7- BENEFITS The Company participates in a 40l{k) profit sharing plan covering substantially all of its employees. The plan includes employee contributions and discretionary employer contributions. The Company is not required to make contributions; however, if the Company makes a contribution, it must at a minimum equal at least 3% of each participant's compensation, as defined under the plan. #### NOTE 8- OTHER ASSETS Other assets were mainly consisting of registered representatives reimbursable expenses at year end. #### NOTE 9- CECL ### Fees Receivable Fees receivable are carried at the amounts billed to customers, net of an allowance for credit losses, which is an estimate for credit losses based on a review of all outstanding amounts. ### Allowance for Credit Losses The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments carried at amortized cost, including fees receivable utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company's expectation is that the credit risk associated with fees receivables is not significant until they are 90 days past due on the contractual arrangement and expectation of collection in accordance with industry standards. Management does not believe that an allowance is required as of December 31, 2021. #### NOTElO-PPP LOAN The Company applied for and received a promissory note (the "PPP Loan") evidencing an unsecured loan in the amount of approximately \$71,800 made to the Company pursuant to the Paycheck Protection Program (the "PPP") under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), which was enacted March 27, 2020. During 2021, the Company submitted its PPP Loan forgiveness application. On June 7, 2021 , the Company was informed that its application for forgiveness of the full amount due under the PPP Loan was approved. {11}------------------------------------------------ #### NOTE IO-PPP LOAN (continued) In accounting for the terms of the PPP Loan, the Company is guided by ASC 470 Debt, and ASC 450-30 Gain Contingency. Accordingly, the Company has no liability for the PPP Loan is reflected in the accompanying Statement of Financial Condition. #### NOTE 11 - RJSKS AND UNCERTAINTIES COVID-19 continues to disrupt economic markets and the economic impact, duration and spread of the COVID-19 virus is uncertain at this time. The impact on financial markets and the overall economy, all of which are highly uncertain, cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period the Company's results may be affected. The financial statement does not include any adjustments that might result from the outcome of this uncertainty. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.