# TGP SECURITIES, INC. X-17A-5 (2023-03-17) — Broker-dealer annual report - Company: TGP SECURITIES, INC. - Form: X-17A-5 - Filed: 2023-03-17 - Period: 2022-12-31 - Accession: 0001528841-23-000003 - CIK: 1528841 - File #: 8-68955 - Type: Broker-dealer - Material weakness: No - Auditor: Reid CPAs, LLP - Auditor location: Woodbury, NY - Contact: James Tammaro - Phone: 908-217-9723 - Signed by: James Tammaro (President) Original filing: https://www.sec.gov/Archives/edgar/data/1528841/000152884123000003/dec2022_audit_tgp_public3.pdf --- {0}------------------------------------------------ # **TGP SECURITIES** STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2022 {1}------------------------------------------------ ![](_page_1_Picture_0.jpeg) ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Shareholders of TGP Securities, Inc. ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of TGP Securities, Inc. as of December 31, 2022, 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 TGP Securities, Inc. as of December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. ### **Basis for Opinion** This financial statement is the responsibility of TGP Securities, lnc.'s management. Our responsibility is to express an opinion on TGP Securities, lnc.'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 TGP Securities, Inc. 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 TGP Securities, lnc.'s auditor since 2018. Woodbury, NY March 16, 2023 7600 Jericho Turnpike, Suite 400, Woodbury, NY 11797 P: 516-802-0100 W: ReldLLP.com {2}------------------------------------------------ # TGP SECURITIES, INC. STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2022 | ASSICING | | |----------------------------------------------------------------------------------------------------------|--------------| | Cash
Accounts receivable
Prepaid insurance
Total assets
LIABILITIES AND SHAREHOLDERS' EQUITY | \$
33.741 | | | 110,500 | | | 3,535 | | | 147,776 | | | | | Liabilities: | | | Accounts payable and accrued expenses | 123,747 | | Shareholders' equity | | | Capital stock - 1,001,000 shares authorized, 1,000 shares issued and outstanding | 10 | | Additional paid-in capital | 316,643 | | Retained earnings | (292,624) | | Total shareholders' equity | 24.029 | | Total liabilities and shareholders' equity | 147,776 | The accompanying notes are an intergrail part of this stotement. {3}------------------------------------------------ ## **TGP SECURITIES, INC.** NOTES TO FINANCIAL ST A TEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022 #### **Note 1** - **Nature of Business** TGP Securities, Inc. (The "Company") operates as a registered broker/dealer in securities under the provisions of the Securities Exchange Act of 1934. The Company is a member of the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company is engaged to provide private placement of securities, mergers, acquisitions, and other financial advisory services. The Company does not carry security accounts for customers and does not perfonn custodial functions relating to customer securities. Under its membership agreement with FINRA, the Company does not execute or clear securities transactions for customers. Accordingly, the Company is exempt from the requirement of Rule 15c3-3, under the Securities Exchange Act of 1934, pertaining to the possession or control of customer assets and reserve requirements. #### **Note 2** - **Summary of Significant Accounting Policies** #### **a)** *Revenue Recognition* Effective January I, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The new revenue recognition guidance requires that an entity recognize revenue due to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The Company applied the modified retrospective method of adoption which resulted in no adjustment to retained earnings as of January I, 2018. The principal source of operating revenues is third party marketing fees for obtaining suitable investors for certain client investment syndications and annual registered representative fees. Revenue is recognized in accordance with F ASB ASC Topic 606 as services are rendered and the contracts identified performance obligations have been satisfied. There were no unsatisfied performance obligations as of December 3 I, 2022. {4}------------------------------------------------ ## **TGP SECURITIES, INC.** NOTES TO FINANCIAL ST A TEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022 #### **Note2- Summary of Significant Accounting Policies** ( **continued)** #### *b) Income Taxes* The amount of current and deferred taxes payable or refundable is recognized as of the date of the financial statements, utilizing currently enacted tax laws and rates. Deferred tax expenses or benefits are recognized in the financial statements for the changes in deferred tax liabilities or assets between years. #### c) *Cash* The Company maintains cash in bank accounts which, at times, may exceed federally insured limits or where no insurance is provided. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash balances. # *d) Use of Estimates* The 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 disclosures of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. #### **Note 3** - **Income Taxes** The Company has available at December 31, 2022 unused operating loss carryforwards of approximately \$70,000 which may be applied against future taxable income, resulting in a deferred tax asset of approximately \$21 ,000 that expires from 2036-2042. A 100% valuation allowance has been established against this asset since management cannot determine if it is more likely than not that the asset will be realized. #### **Note 4** - **Net Capital Requirement** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule l 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 I 500%. At December 31, 2022, the Company had net capital of \$13,524 which was \$5,274 over its required net capital of \$8,250. The Company's aggregate indebtedness to net capital ratio 915%. {5}------------------------------------------------ ## **TGP SECURITIES, INC.** NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022 #### **Note5- Compliance with Rule 15c3-3** In reliance on footnote 74 to SEC Release 34-70073 and as discussed in Q&A 8 of the related FAQ issued by SEC staff, the Company will not claim an exemption from SEA Rule I5c3-3. ### **Note 6- Commitments and Contingencies** The Company as no commitments or contingencies as of December 3 I, 2022. ### **Note 7- Subsequent Events** The Company has perfonned an evaluation of events that have occurred subsequently to December 31, 2022, and through the date this report was issued. There have been no material subsequent events that occurred during such period that would require disclosure in this report or would be required to be recognized in the financial statements as of December 3 I, 2022. 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