# OMAC BEVERAGE SECURITIES LLC X-17A-5 (2020-02-11) — Broker-dealer annual report
- Company: OMAC BEVERAGE SECURITIES LLC
- Form: X-17A-5
- Filed: 2020-02-11
- Period: 2019-12-31
- Accession: 0001549994-20-000001
- CIK: 1549994
- File #: 8-69096
- Material weakness: No
- Auditor: Rubio CPA PC
- Auditor location: Atlanta, GA
- Contact: Sean McLaren
- Phone: 404-442-8760
- Signed by: Sean O. McLaren (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1549994/000154999420000001/omac.pdf
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#### UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
OMS APPROVAL OMB Number: 3235-01 23 Expires: August 31, 2020 Estimated average burden hoursperresponse ...... 12.00
### **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill**
| SEC FILE NUMBER |
|-----------------|
| 8-69096 |
FAC ING PAGE
Info rmation Required of Brokers and Dealers Pursuant to Section 17 of th·e Securities Exchange Act of 1934 and Rule 17a-5 Thereundc•·
| REPORT FOR THE PERIOD BEGINNING 01/01/19
AND ENDING 12/31/19 | | | | |
|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|----------------------------------|-----------------------------------------|--|
| | ----------------------
MMIDD/YY | -------------------
MM/Dil/YY | | |
| | A. REGISTRANT IDENTIFICATION | | | |
| NAME OF BROKER-DEALER: OMAC BEVERAGE SECURITIES LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
305 W. WIEUCA ROAD NE | | | OFFICIAL USE ONLY | |
| | | | FIRM I.D. NO. | |
| | (No. and Street) | | | |
| ATLANTA | GA | | 30342 | |
| (City) | (State) | (/.ip Code) | | |
| NAME AND T
SEAN 0 . MCLAREN | ELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | ---- | (•104) 442-8760
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- | |
| | B. ACCOUNTANT IDENTIFICATION | | (Area Code - l'clcphonc Number) | |
| RUBIO CPA, PC | (Name - iltmlrviduol. srme las!. /irsr. multi/~ name) | | | |
| 2727 Paces Ferry Rd SE, Suite 2-1680 ATLANTA | | GA | 30339 | |
| (J\ddrc~s) | (Cit)) | (State) | (i'.1p Code) | |
| CHECK O
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lcerti fied Public Accountant
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Public Accountant
D | Accountant not resident in United States or any of its possessions. | | | |
| | FOR OFFICIAL USE ONLY | | | |
| | | | -~· | |
| | | | | |
| *Ciaimsfor exemptionji·om the requireme111 that the uni/IIlll report be covered by the opini | | | on c~lan indepemlent public acc:mmtallf | |
*\*Ciaimsfor exemptionji·om the requireme111 that the uni/IIlll report be covered* by *the opini must be supported* l~r *a statement oflacts and circumstances relied* 011 *as* I *he basis for the exemption. See Section 2·10.17a-5fe}(2)*
> Potential persons who are to respond to the collec:tion of Information contained in this form are not required to rt!spond unless the form displays a currently valid OMB control number.
SEC 141 0 (06-02)
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### OATH OR AFFIRMATION
| 1. SEAN 0 . MCLAREN | ·----. swear (or affirm) that. to the best of |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| OMAC BEVERAGE SECURITIES LLC
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-
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··- | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the frrm of
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__ -
. as |
| __
of DECEMBER 31
_ | __
__
•. 20_1_9
• arc tn1c and con·ect. I further swear (c•r affirm) that |
| classified solely as that of a customer. except as follows: | neither the company nor any partner, proprietor. principal ofliccr or director has any proprietary interest in any accoun1
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--Signature --·---- |
| | CEO |
| This report • • conta s (check all applicable boxcst
0 (a) Facing Page.
(b) Statement of Financial Condition.
(c) Statement of Income (Loss).
(d) Statement of Changes in Financial Condition.
(e) Statement of Changes in Stockholders' Equity or l)artners· or Sole Proprietors· Capital.
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(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
-/ (g) Computation of N~:t Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3.
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(j) A Reconciliation. including appropriate explanation of the Computation of Net Capital Under Rule I Sd-1 and
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Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3.
0 (k) A Reconciliation between the audited and unaudited Statemen'ls of Financial Condition with respect to rnethod:o of |
| l7J_ {I) An Oath or Affirmation.
[. J (m) A copy of the SIPC Supplemental Report. | U (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. |
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## **OMAC Beverage Securities, LLC**
Financial Statements For the Year Ended December 31 , 2019 With Report of Independent Registered Public Accounting Firm
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### RUBIO CPA, PC CERTIFIED PUBLIC ACCOUNTANTS
2727 Paces Ferry Road SE Building 2. Suite 1680 Atlanta. GA 30339 Office: 770 690-8995 Fax: 770 838-7123
### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Members of OMAC Beverage Securities LLC
#### Opinion on the Financial Statements
We have aud ited the accompanying statement o f financial condition ofOMAC Beverage Securities LLC (the ·'Company") as of December 3 I, 20 I 9, the related statements of operations, changes in members' equity, and cash flows for the year then ended and the related notes (collectively referred to as the " financial statements"). In our opi nion, the financial statements present fa irly, in all material respects, the financia l position of the Company as of December 31 , 2019, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the Un ited 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 Oversjght 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 statements are free of 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 audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinio n on the effectiveJ1ess of the Company 's internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material. misstatement to the financial statements, whether due to error or fra ud, and performing procedures that respond to those risks. Such procedures included exam ining, 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 rhe overall presentation of the financial statements. We believe that our audit prov ides a reasonable basis of our opinion.
#### Supplemental Iriformation
The information contained in Schedules I, II and Ill has been subjected to audit procedures performed in conj unction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the information in Schedules I, II and III reconciles to the fina.ncial statements or the underlying accounting and other records, as a pplicable, and performing procedures to test the completeness and accuracy of the information presented in the accompanying schedules. in forming our opinion on the accompany ing
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schedules, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the aforementioned supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
We have served as the Company's auditor since 2013.
February II, 2020 Atlanta, Georgia
Rubio CPA, PC
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### OMAC Beverage Securities, LLC Statement of Financial Condition December 31 , 2019
#### Assets
| Cash | \$
81 '115 |
|---------------------------------------|---------------|
| Accounts receivable | 150,893 |
| Prepaid expenses and other assets | 3,663 |
| Total Assets | 235,671 |
| Liabilities and Members' Equity | |
| Liabilities | |
| Accounts payable | 2,229 |
| Due to related party | 18,777 |
| Total Liabilities | 21,006 |
| Members' equity | 214,665 |
| Total Liabilities and Members' Equity | \$
235,671 |
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### OMAC Beverage Securities, LLC Satement of Operations For the Year Ended December 31 , 2019
| Revenues | |
|-------------------------------|-----------------|
| Interest | \$
2 |
| Total revenues | \$
2 |
| Expenses | |
| Compensation and benefits | 106,203 |
| Professional services | 23,070 |
| Advertising and marketing | 11,731 |
| Occupancy | 5,114 |
| Technology and communications | 3,641 |
| Other expenses | 27,905 |
| Total expenses | 177,664 |
| Net loss | \$
(177,662) |
| | |
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### OMAC Beverage Securities, LLC Statement of Changes in Members' Equity For the Year Ended December 31, 2019
| | Total | |
|-----------------------------------------|-------|------------|
| Balance, January 1, 2019 | \$ | 345,4<64 |
| Contribution of expenses paid by member | | 3,953 |
| Members' contributions | | 63,953 |
| Members' distributions | | (21 ,043) |
| Net loss | | (177,6,62) |
| Balance, December 31, 2019 | \$ | 21416,65 |
| | | |
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### OMAC Beverage Securities, LLC Statement of Cash Flows For the Year Ended December 31 , 2019
| Cash flows from operating activities: | |
|-------------------------------------------------------------------|-----------------|
| Net loss | \$
(177,662) |
| Items which do not affect cash: | |
| Contribution of expenses paid by member | \$
3,953 |
| Adjustments to reconcile net loss to net cash used in operations: | |
| Change in accounts receivable | 143,644 |
| Change in prepaid expenses and other assets | 2,390 |
| Change in accounts payable | (1 ,366) |
| Change in due to related party | (254,716) |
| Net cash used by operating activities: | (283,757) |
| Cash flows from financing activities: | |
| Members' contributions | 63,953 |
| Members' distributions | (21 ,043) |
| Net cash provided by financing activities: | 42,910 |
| Net decrease in cash | (240,847) |
| Cash Balance: | |
| Beginning of year | 321,962 |
| End of year | \$
81,115 |
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### **OMAC Beverage Securities, LLC Notes to Financial Statements December 31, 2019**
### **NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
Organization and Description of Business: OMAC Beverage Securities, LLC (the "Company"), a Georgia limited liability company, was organized in April 2012 and became a broker-dealer in October 2012. The Company is a securities broker-dealer registered with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"). As a limited liability company, the members' liabilities are limited to their investment in the Company.
The Company's primary business is investment banking services, and it operates under the provisions of paragraph (k)(2)(i) of Rule 15c3-3 of the Securities Exchange Act of 1934. The Company operates from offices located in Georgia and Missouri, and its customers are located throughout the United States.
Accounting Policies: The Company follows Generally Accepted Accounting Principles (GAAP), as established by the Financial Accounting Standards Board (the FASB), to ensure consistent reporting of financial condition, results of operations, and cash flows.
Cash: The Company maintains its cash deposits at a high credit quality financial institution. Balances at times may exceed federally insured limits.
Income Taxes: The Company is a Limited Liability Company that is taxed as a partnership under the Internal Revenue Code regulations. Therefore, the income or losses of the Company flow through to and are taxable to its members, and no income taxes are reflected in the accompanying financial statements.
The Company has adopted the provisions of FASB Accounting Standards Codification 740-10, Accounting for Uncertainty in Income Taxes. Under FASB 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 includes an entity's status, including its status as a pass-through entity, and the decision not to file a return. The Company has evaluated each of its tax positions and has determined that it has no uncertain tax positions for which a provision or liability for income taxes is necessary.
Estimates: Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could vary from the estimates that were assumed in preparing the financial statements.
Date of Management's Review: Subsequent events were evaluated through the date the financial statements were issued. The Comparny is not aware of any significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on the financial statements.
Accounts Receivable: Accounts receivable are non-interest bearing uncollateralized obligations receivable in accordance with the terms agreed upon with each customer. The Company regularly reviews its accounts receivable for any uncollectible amounts. The review for uncollectible amounts is based on an analysis of the Company's collection experience, customer credit worthiness and current economic trends. Based on managements review of accounts receivable, no allowance for doubtful accounts is considered necessary at December 31, 2019.
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### **OMAC Beverage Securities, LLC Notes to Financial Statements December 31, 2019**
### **NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)**
Revenue Recognition: Investment banking revenues include fees earned from providing merger and acquisition and other advisory services to clients. Revenue is recognized when earned, which generally occurs as services are performed or upon consummation of a transaction.
Revenue from Contracts with Customers Standard (ASU 2014-09) core principle is that an entity should recognize revenue when it transfers 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. ASU 2014-09 prescribes a five-step process to accomplish this core principle, including:
- Identification of the contract with the customer;
- Identification of the performance obligation(s) under the contract;
- Determination of transaction price;
- Allocation of the transaction price to the identified performance obligation(s); and
- Recognition of revenue as (or when) an entity satisfies the identified performance obligation(s).
The Company recognizes success fee revenue upon completion of a success fee-based transaction as this satisfies the only performance obligation identified in accordance with this standard.
Fair Value of Financial Instruments: The Company's financial instruments, including cash, accounts receivable, prepaid expenses and other assets, accounts payable and due to related party, are carried at cost, which approximates their fair value because of the short-term nature of these assets and liabilities.
### **NOTE B- NET CAPITAL**
The Company is subject to SEC Uniform Net Capital Rule (SEC Rule 15c3-1 ), which requires the maintenance of a minimum net capital, as defined, equal to the greater of \$5,000 or 6 2.3% of aggregate indebtedness as well as a ratio of aggregate indebtedness to net capital that shall not exceed 15 to 1. At December 31,2019, the Company had net capital of \$60,109 which was \$55,109 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was .35 to 1.
The Company is exempt from the provision of Rule 15c3-3 under the Securities Exchange Act of 1934 pursuant to Paragraph (k)(2)(i).
### **NOTE C- RELATED PARTY TRANSACTIONS**
The Company has an expense sharing agreement with a related company. Under the terms of the agreement, the Company pays the affiliated company for personnel services, occupancy, and other administrative costs provided to the Company. The amount expensed under the arrangement for the year ended December 31 , 2019 was approximately \$135,123. The balance due to related party on the accompanying statement of financial condition arose from the services agreement. Financial condition and results of operations might differ from the amounts in the accompanying financial statements if this arrangement did not exist.
#### **NOTE 0 - CONTINGENCIES**
The Company is subject to litigation in the normal course of business. The Company has no litigation in progress at December 31 , 2019.
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### **OMAC Beverage Securities, LLC Notes to Financial Statements December 31, 2019**
### **NOTE E- CONCENTRATIONS**
All of the accounts receivable at December 31, 2019 is due from one customer. The balance is due in May 2024 under the terms of the agreement.
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### SUPPLEMENTAL INFORMATION
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### OMAC Beverage Securities, LLC Schedule I Computation of Net Capital Pursuant to Rule 15c3-1 Of the Securities and Exchange Commission Act of 1934 As of December 31 , 2019
#### Net capital:
| Total Members' equity | \$
214,665 |
|----------------------------------------------------------------|---------------|
| Less: | |
| Accounts receivable | 150,893 |
| Prepaid expenses and other assets | 3,663 |
| Total deductions and/or charges | 154,556 |
| Net capital before haircuts | 60,109 |
| Less haircuts | |
| Net capital | 60,109 |
| Minimum net capital required | 5,000 |
| (greater of \$5,000 or 6 2/3% of total aggregate indebtedness) | |
| Excess net capital | \$
55,109 |
| Aggregate indebtedness | \$
21,006 |
| Net capital requirement based on aggregate indebtedness | \$
1 400 |
| Percentage of aggregate indebtedness to net capital | 34.95% |
Reconciliation with Company's computation of net capital included in Part IIA of Form 17X-5A and net capital as computed above.
There is no significant difference between net capital as reported in Form X-17 A-5 and net capital as computed above.
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### OMAC Beverage Securities, LLC
### SCHEDULE II COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31 , 2019
The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, pursuant to paragraph (k)(2)(i) of the rule.
### SCHEDULE Ill INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31 , 2019
The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, pursuant to paragraph (k)(2)(i) of the rule.
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### **EXEMPTION REPORT**
### **SEA RULE 17a-5(d)(4)**
February 3, 2020
Rubio CPA, PC 2727 Paces Ferry Road SE Building 2, Suite 1680 Atlanta, Georgia 30339
To Whom it May Concern:
The below information is designed to meet the Exemption Report criteria pursuant to SEC Rule 17a-S(d)(4):
OMAC Beverage Securities, LLC is a brokerjdealer registered with the SEC and FINRA. Pursuant to paragraph k(2)(i) of SEA Rule 15c3-3, the Company is claiming an exemption from SEA Rule 15c3-3 for the fiscal year ended December 31, 2019.
The Company has met the identified exemption provisions throughout the most recent fiscal year without exception.
The above statement is true and correct to the best of my and the Company's knowledge.
\_L\_\_ *Yr. ·-t:.* - Signed: \_\_\_\_\_\_\_\_\_ \_
Name: Sean McLaren
Title: CEO
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# RUBIO CPA, PC
CERTIFIED PUBLIC ACCOUNTANTS
2 72 7 Paces Ferry Road SE Building 2, Suite 1680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 770 838-7123
### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Members of OMAC Beverage Securities LLC
We have reviewed management's statements, included in the accompanying Broker Dealers Annual Exemption Report in which (I) OMAC Beverage Securities LLC identified the following provisions of 17 C.F.R. § 15c3-3(k) under which OMAC Beverage Securities LLC claimed an exemption from 17 C.F.R. § 240.1 5c3-3: (k)(2)(i) (the "exemption provisions"); and, (2) OMAC Beverage Securities LLC stated that OMAC Beverage Securities LLC met the identified exemption provisions throughout the most recent fiscal year without exception. OMAC Beverage Securities LLC"s management is responsible for compliance with the exemption provisions and its statements.
Our re iew was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about OMAC Beverage Securities LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(i), of Rule I Sc3-3 under the Securities Exchange Act of 1934.
February I 1,2020
Atlanta, GA ~ c.J?~t?(/
Rubio CPA, PC
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