# HEIKKINEN ENERGY SECURITIES, LLC X-17A-5 (2021-02-26) — Broker-dealer annual report - Company: HEIKKINEN ENERGY SECURITIES, LLC - Form: X-17A-5 - Filed: 2021-02-26 - Period: 2020-12-31 - Accession: 0001566745-21-000001 - CIK: 1566745 - File #: 8-69224 - Material weakness: No - Auditor: Turner, Stone & Company, L.L.P. - Auditor location: Dallas, TX - Contact: David Heikkinen - Phone: 713-955-5330 - Signed by: David Heikkinen (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1566745/000156674521000001/2020auditheikkinen-.pdf --- {0}------------------------------------------------ **UNITEDSTATES SECURITIESANDEXCHANGECOM1V1ISSION Washington,D.C. 20549** OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden ## **ANNUAL** hours per response 12.00 **AUDITED REPORT FORM X-17A-5 PART III** SEC FILE NUMBER s-69224 **FACING PAGE** **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING01/01/2020 | | AND ENDING12/31/2020 | | |----------------------------------------------------------------------|--------------------------------------------------------------------------|----------------------|---------------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: Heikkinen | Energy
Securities | LLC
, | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use
P.O. Box No.) | | | FIRM I.D. NO. | | 2322
Bissonet
Street
, | Suite
4 | | | | | (No. and Street) | | | | Houston | TX | | 77005 | | (City) | (State) | | (Zip Code) | | David Heikkinen | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | 713-955-5330 | | | | | ( Area Code - Telephone Number) | | B. | ACCOUNTANT
IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | Turner
Stone
&
Company
, | L
P
L
, | | | | | (Name -if individual, state last. Jirst. middle name ) | | | | 12700
Park
Central
Dr., | Dallas
STE
1400 | TX | 75251 | | ( Address) | (City ) | (State) | (Zip Code) | | CHECK ONE: | | | | | /
Certified Public Accountant | | | | | Public Accountant | | | | | | Accountant not resident in United States or any of its possessions. | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | *^Claims for exemption from the requirement that the annual report he covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2)* **Potential persons who are to respond to the collection of information contained in this form are not required to respond** SEC 1410 **unlesstheform displays a currently valid OMB control number.** (11-05) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | I,
David
Heikkinen | ,
that,
to the best of
swear (or affirm) | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | my knowledge and belief
Heikkinen
Energy
Securities,
LLC | of
the accompanying financial statement and supporting schedules pertaining to the firm
as | | December
31
,
0f | ,
are true and correct. I
2020
further swear (or affirm) that | | proprietor,
neither the company nor any partner,
principal officer
classified solely as that of
a customer,
except as follows: | or director has any proprietary interest in
any account | | l&
SHANNON THURMOND
sNotary Public. State of Texas
Comm. Expires 02-27-2021
Notary ID 12931712- 1
Notary Public | V
«r
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Chief
Executive
Officer
Title | | applicable boxes):
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Financial Condition.
(b) Statement of
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audited and unaudited Statements of
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the Computation ofNet
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the Reserve Requirements Under Exhibit A
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A report describing any material inadequacies found to exist or found to have existed since the date ofthe | | For conditions of
certain portions
confidential treatment of
** | see section 240.17a-5(e)(3).
this filing,
of | {2}------------------------------------------------ **Heikkinen Energy Securities, LLC** **Financial Statements** **and** **Report of Independent Registered Public Accounting Firm** **For the Year Ended December 31, 2020** {3}------------------------------------------------ ### **TABLE OF CONTENTS** | OF
REGISTERED
ACCOUNTING
REPORT
INDEPENDENT
PUBLIC
FIRM
I | |---------------------------------------------------------------------------------| | STATEMENT
OF
FINANCIAL
CONDITION
3 | | MEMBER'S
4
STATEMENT
OF
OPERATIONS
AND
CAPITAL | | STATEMENT
OF
FLOWS
5
CASH | | 6-11
NOTES
TO
FINANCIAL
STATEMENTS | | 1 2
SCHEDULE
I | | REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
13 | | EXEMPTION
REPORT
14 | {4}------------------------------------------------ *Your Vision Our Focus* ![](_page_4_Picture_1.jpeg) ### Report of Independent Registered Public Accounting Finn To the Member of Heikkinen Energy Securities, LLC ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Heikkinen Energy Securities, LLC (the "Company") as of December 31, 2020 and the related statements of operations and member's capital and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United 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 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 statements are 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 statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include 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. Turner, Stone & Company, L.L.P. Accountants and Consultants 12700 Park Central Drive, Suite 1400 Dallas,Texas 75251 **Telephone:** 972-239-1660/Facsimile: 972-239-1665 Toll Free: 877-853-4195 Web site: turnerstone.com ![](_page_4_Picture_11.jpeg) {5}------------------------------------------------ #### Supplemental Information The supplementary information contained in Supplemental Schedule I has been subjected to audit procedures performed in conjunction with the audit of Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included detennining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, 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, Schedule I is fairly stated, in all material respects, in relation to the financial statements as a whole. Lt.P 3 Certified Public Accountants February 25, 2021 We have served as the Company's auditor since 2019. {6}------------------------------------------------ ### **HEIKKINEN ENERGY SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31 , 2020** #### Assets Current assets: | Cash | S | 3,090,160 | |-------------------------------------------------------------|----|-----------| | Accounts
receivable | | 157,483 | | broker/dealer
Receivable
from
clearing | | 141,597 | | Unbilled
income | | 148,744 | | Accounts
other
receivable | | 2,830 | | deposit
Clearing | | 250,000 | | Due
from
affiliate | | 3,944 | | Prepaids
and
deposits | | 93,194 | | assets
current
Total | | 3,887,952 | | Furniture,
equipment,
and
at
cost:
fixtures | | | | Leasehold
improvements | | 14,884 | | and
Furniture
equipment | | 34,619 | | Less
accumulated
depreciation | | (49,503) | | furniture,
equipment,
Total
and
fixtures
net | | | | assets
Total | \$ | 3,887,952 | | Member's
Capital
and
Liabilities | | | | liabilities:
Current | | | | Accounts
accrued
payable
and
liabilities | \$ | 76,026 | | Deferred
Income | | 12,500 | | Payroll
tax
liability | | 81,716 | | Accrued
state
tax
income | | 9,468 | | current
Total
liabilities | | 179,710 | | Member's
capital | | 3,708,242 | | member's
liabilities and
Total
capital | S | 3,887,952 | The accompanying notes are an integral part of the financial statements. {7}------------------------------------------------ ### **HEIKKINEN ENERGY SECURITIES, LLC STATEMENT OF OPERATIONS AND MEMBER'S CAPITAL** F O R T H E Y E A R E N D E D D E C E M B E R 3 1, 2 0 2 0 | Revenues | | |------------------------------------------------------------------------------|-----------------| | Comrrrissons
income | \$
1,491,836 | | Success
fee
income | 125,762 | | Consulting
and
research
fees | 3,063,372 | | Investment
banking
income | 148,744 | | Reimbursed
income | 10,778 | | | 4,840,492 | | | | | expenses:
Costs
and | | | Travel
entertainment
and | 39,089 | | Clearing
Expenses | 335,308 | | Salaries
and
benefits | 2,303,777 | | expenses
Technology
and
communication | 247,594 | | General,
administrative,
regulatory
and
expense
miscellaneous | 762,242 | | fees
and
professional
Legal | 98,348 | | Occupancy
expense | 123,620 | | and
expense
Depreciation
amortization | 13,114 | | Total
costs
and
expenses | 3,923,092 | | | | | (expense):
Other
income | | | Gain/(Loss)
on
of
asset
sale | 400 | | SBA
PPP
loan
forgiveness | 434,722 | | Interest
Income | 6,874 | | | 441,996 | | Net
income | 1,359,396 | | | | | Member's
capital,
year
of
beginning | 2,823,846 | | Member's
distribution | (475,000) | | capital,
Member's
year
end
of | \$
3,708,242 | The accompanying notes are an integral part of the financial statements. {8}------------------------------------------------ ### **HEIKKINEN ENERGY SECURITIES, LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31 , 2020** | OPERATING
ACTIVITIES | | |-------------------------------------------------------------------------------------|-----------------| | Net
income | \$
1,359,396 | | Adjustments
to
reconcile
net
income | | | cash
to
activities:
net
provided
by
operating | | | Depreciation
and
amortization | 13,114 | | PPP
forgiveness
loan | (434,722) | | assets
Changes
and
in operating
liabilities | | | Accounts
receivable | ( 11,598) | | Prepaids
and
deposits | 20,545 | | Due
from
affiliate | (3,944) | | Accounts
and
accrued
payable
liabilities | (36,988) | | liability,
Lease
current | (39,788) | | Due
to
affiliate | (1,613) | | Net
cash
Operating
provided
by
Activities | 864,402 | | INVESTING
ACTIVITIES | | | assets
Purchase
of
fixed | 39,388 | | asset
Proceeds
from
sale
of
fixed | 400 | | Net
cash
provided
Investing
Activities
by
FINANCING
ACTIVITIES | 39,788 | | PPP
loan | 434,722 | | Member's
distribution | (475,000) | | Net
cash
used
in Financing
Activities | (40,278) | | cash
Net
increase | 863,912 | | Cash
at
year
of
beginning | 2,226,248 | | Cash
at
year
end
of | \$
3,090,160 | | disclosure:
Supplemental | | | tax
Income
paid | \$
4,746 | | Interest
paid | \$ | The accompanying notes are an integral part of the financial statements. {9}------------------------------------------------ ### **1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:** ### Business and operations CDH Securities (the "Company") changed its name to Heikkinen Energy Securities, LLC on October 14, 2015. It is a Texas LLC formed in December 2012 and is a limited broker-dealer registered with the Securities and Exchange Commission ("SEC") under rule 15c3-3(k)(2)(ii) and is a member of the Financial Industry Regulatory Authority ("FINRA") and Security Investors Protection Corporation ("SIPC"). As a limited broker-dealer, the Company will not maintain any margin accounts, will promptly transmit customer funds and deliver securities received, and does not hold funds or securities for, or owe money or securities to customers. The Company is a wholly owned subsidiary of Heikkinen Energy Advisors LLC (the "Parent"). The Company provides investment banking, financial advice, equity research and sales to the energy and institutional investment industries. The Company also participates in the underwriting of securities offered for sale in public markets. The Company is based in Houston, Texas, and maintains branch offices in New Orleans, Louisiana and Dallas, Texas. At December 31, 2020, the Company was registered as a limited broker-dealer in several states. The Company does not carry customer accounts or perform custodial functions relating to customer securities. Accordingly, the Company is exempt under SEC Rule 15c3-3(k)(2)(ii) from certain regulations concerning reserves and protection of customer securities; consequently, Computation for Determination of Reserve Requirements and Information Relating to the Possession or Control Requirements pursuant to SEC Rule 15c3-3 are not required. ### Management estimates The preparation of financial statements in conformity with U.S. 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 statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ### Cash and cash flows For purposes of the statement of cash flows, cash includes demand deposits, time deposits, certificates of deposit and short-term liquid investments with original maturities of three months or less when purchased. The Company maintains deposits in a financial institution. At December 31, 2020, the Federal Deposit Insurance Corporation (FDIC) provided insurance coverage of up to \$250,000, per depositor, per institution. At December 31, 2020, the Company's cash was \$2,840,160 in excess of federally insured limits. ### Furniture, fixtures and equipment Furniture, fixtures and equipment are stated at cost less accumulated depreciation. Depreciation of furniture, fixtures and equipment being provided using the straight-line method for financial reporting purposes over estimated useful lives of five to seven years and using accelerated methods for tax reporting purposes. {10}------------------------------------------------ ### Revenue recognition In 2019 the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Revenue from contracts with customers includes fees from investment banking services. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. The Company earns fees and commissions in connection with the placement and advisory services it provides and recognizes revenue when the Company has completed its contractual obligations and collection is reasonably assured. #### Investment Banking Revenue Investment banking revenues include gains, losses, and fees, net of syndicate expenses, arising from securities offerings in which the Company acts as an underwriter or agent. Investment banking management fees, underwriting fees and sales concessions are recorded on offering date. The Company earns fees and commissions in connection with the placement services it provides and recognizes revenue when the Company has completed its contractual obligations and collection is reasonably assured. #### Commission Income Revenues are comprised of commissions on trade executions for institutional customers. Commissions on such transactions are recorded on a trade date basis as is the related expense. The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. #### Success Fee Income Revenue is recognized when security deals are closed, securities are exchanged and all elements of contractual fulfillment are met. Success Fee revenues include fees earned from providing merger-and-acquisition and financial restructuring advisory services. Success Fees from securities related transactions are recognized when earned under the respective agreements. {11}------------------------------------------------ ### Research Revenue The Company provides research on the oil and gas exploration and production industry and related equity on a daily basis. The Company also produces research on topical issues within the energy sector. Recipients of this research compensate the Company for these market insights by direct payment, or through thirdparty commission sharing agreements. Direct payments and commission sharing payments are recorded as revenue when an invoice is requested by the customer or when cash is received, whichever occurs first. ### Deferred Revenue Deferred revenue represents revenues collected but not earned as of December 31, 2020. This is primarily composed of revenue for research. If the subscription period is conducted over the year-end, deferred revenue is recorded for all revenue related to fulfillment of subscriptions in the next fiscal year. #### Fair value of financial instruments In accordance with the reporting requirements of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 825, *Financial Instruments*, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this standard and includes this additional information in the notes to the financial statements when the fair value is different than the carrying value of those financial instruments. The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at December 31, 2020, nor gains or losses reported in the statement of operations and member's capital that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held during the year ended December 31, 2020. #### Fair value measurements ASC Topic 820, *Fair Value Measurement*, defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the customer's creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. #### Recent accounting pronouncements During the year ended December 31, 2020 and through February 25, 2021, there were several new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company's financial statements. {12}------------------------------------------------ ### Subsequent events In preparing the financial statements, the Company has reviewed, as determined necessary by the Company's management, events that have occurred after December 31, 2020, up until the issuance of the financial statements, which occurred on February 25, 2021. ### **2. TRANSACTIONS WITH RELATED PARTY** The Company incurred monthly incremental expenses on behalf of Blue Wave Oil and Gas totaling \$10,778 for the year ended December 31, 2020. The Company had related party payables with Heikkinen Energy Advisors and Advisor Energy in the amounts of \$3,944 and \$12,125 respectively for the year ended December 31, 2020. ### Related Party Revenue The Company invoices Blue Wave in arrears monthly for the incurred expenses. The Blue Wave Reimburse Expense Income totaled \$10,778 for the year ending December 31, 2020. ### **3. DUE FROM CLEARING BROKER:** The Company has a clearing agreement with a clearing broker, which will provide the clearing and depository operations for the Company's security transactions. Pursuant to the clearing agreement, the Company is obligated to maintain a deposit of \$250,000. This deposit is included in the clearing deposit in the statement of financial condition. The Company has agreed to indemnify its clearing broker for losses that the clearing broker may sustain from the customer accounts introduced by the Company. ### **4. COMMITMENTS AND CONTINGENCIES:** #### Operating lease The Company licenses its office space under the terms of the licensing agreement, which expired on November 12, 2020; pursuant to the licensing agreement the Company extended for another sixty (60) day. For the year ended December 31, 2020, rent expense totaled \$50,140 and included maintenance, and other costs as required by the Company's lease. A right-of-use asset and operating lease liability has been recorded with the adoption of Topic 842, pertaining to this office lease. Due to the short-term nature of the lease an incremental interest rate was not utilized. Operating lease expense is recognized on a straight-line basis over the lease term. The operating lease expense for the current lease totaled \$39,788 for the year ended December 31, 2020. {13}------------------------------------------------ ### **5. INCOME TAXES:** The Company is organized as a limited liability company under the provisions of the Internal Revenue Code of 1986 as amended. Accordingly, the financial statements do not include a provision for federal income taxes because the Company does not incur federal income tax liabilities. Instead, its earnings and losses are included in the Member's income tax return and are taxed based on the Parent's income tax rate. ### **6. NET CAPITAL REQUIREMENTS:** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1 ), 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 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, 2020, the Company was in compliance with \$179,710 of aggregate indebtedness and net capital of \$3,301,349. # **7. REVOLVING LINE OF CREDIT -SUBORDINATED DEBT:** The Company has a revolving line of credit with its bank bearing variable interest rate determined at the date of each advance at the rate agreed upon between the lender and the Company. The revolving line of credit matures November 1, 2021. The credit facility allows borrowings up to \$3,000,000. This obligation is secured by personal guarantees of the Company's officers. At December 31, 2020, there were no advances against the line of credit. The lender irrevocably agrees that the obligations of the Broker/Dealer under this agreement with respect to the payment of principal and interest are and shall be fully and irrevocably subordinated in the right of payment and subject to the prior payment or provision for payment if full of all claims of all other present and future creditors of the Company whose claims are not similarly subordinated. ### **8. RISKS AND CONCENTRATIONS:** The Company maintains all of its cash in a major bank, which at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not subject to any significant credit risk on cash. ### **9. NOTE Payable** On April 14, 2020, the Company entered into a promissory note ("PPP Loan") with a principal balance of \$434,722 with Iberia Bank pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relieve and Economic Security Act (The "CARES Act"). The PPP Loan has a maturity date of April 14, 2022 with an annual interest rate of 1% and can be forgiven without interest if the loan is paid within the first ten months of receiving the loan. Under the CARES Act, loan forgiveness is available based on the Company's expenditures for qualified expenses during a 24-week period beginning with the loan approval. The Company's loan was forgiven on December 30, 2020. At December 31,2020, the Company had no PPP loan balance. {14}------------------------------------------------ ### **10. RULE 15c3-3 EXEMPTION:** The Company claimed an exemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R. § 240.15c3-3 (k):(2)(ii). The Company met the identified exemption provisions in 17 C.F.R. § 240.15c3-3(k) throughout the most recent fiscal year without exception. ### Customer concentrations For the year ended December 31, 2020, the Company had the following customer concentrations with respect to its revenues: | | | | Accounts | | | |-----------------|---------------|-------|------------|--|--| | | | Sales | Receivable | | | | Pershing
LLC | Customer
1 | 31% | 48% | | | {15}------------------------------------------------ ### **HEIKKINEN ENERGY SECURITIES, LLC SCHEDULE I DECEMBER 31, 2020** | requirement,
Net
capital
greater
of:
the
1/15%
of
aggregate
indebtedness | \$ | 11,981 | \$ | 100,000 | |-----------------------------------------------------------------------------------------------------|----|---------|----|-----------| | requirement
Minimum
dollar | | 100,000 | | | | Net
capital | | | | 3,301,349 | | Excess
net
capital | | | \$ | 3,201,349 | | Aggregate
indebtedness | | | | 179,710 | | aggregate
capital
Ratio
of
indebtedness
to
net | | | | 5.44% | | subordinated
indebtedness
debt/equity
total
Ratio
of
to | | | | | | 120%
of
required
capital
net | | | | 120,000 | | in excess
120%
Net
capital
of
of
required
net
capital | | | | 3,181,349 | | | | | | | | assets
Total | | | \$ | 3,887,952 | | Less:
total
liabilities | | | | 179,710 | | Net
worth | | | | 3,708,242 | | and/or
charges
Deductions
from
to
net
worth | | | | | | non-allowable
assets
Total | \$ | 406,195 | | | | Other
charges
deductions
or | | | | | | Excess
Bond
Deductible
Fidelity | | | | | | net
Total
deductions
from
worth | | | | 406,195 | | Net
capital
before
haircuts
securities
on
positions | | | | 3,302,047 | | certificates
Haircuts
of
deposit
and
on | | | | | | commercial
paper | | | | | | Other
securities | | 698 | | | | Other
positions | | | | | | concentrations
Undue | | | | | | haircuts
of
securities
Total | | | | 698 | | | | | | | | Net
capital | | | \$ | 3,301,349 | There are no material differences between the amounts presented above and the amounts reported on the Company's FOCUS report as of December 31, 2020. {16}------------------------------------------------ *Your Vision Our Focus* ![](_page_16_Picture_1.jpeg) ### Report of Independent Registered Public Accounting Firm To the Member of Heikkinen Energy Securities, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Heikkinen Energy Securities, LLC identified the following provisions of 17 C.F.R. §15c3-3(k) under which Heikkinen Energy Securities, LLC claimed an exemption from 17 C.F.R. §240.15c3-3, specifically 17 C.F.R. §240.15c3-3(k)(2)(ii) (the exemption provisions) and (2) Heikkinen Energy Securities, LLC stated that Heikkinen Energy Securities, LLC met the identified exemption provisions throughout the most recent fiscal year without exception. Heikkinen Energy Securities, LLC's management is responsible for compliance with the exemption provisions and its statements. Our review 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 Heikkinen Energy 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)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. L L . P **t** Certified Public Accountants February 25, 2021 Turner, Stone & Company, L.L.P. Accountants and Consultants 12700 Park Central Drive, Suite 1400 Dallas,Texas 75251 **Telephone:** 972-239-1660/Facsimile: 972-239-1665 Toll Free: 877-853-4195 Web site: turnerstone.com ![](_page_16_Picture_11.jpeg) {17}------------------------------------------------ # **Heikkinen Energy Securities, LLC.** **2322 Bissonet Street, Suite 4 / Houston, Texas 77005 713-955-5330** ### **Exemption Report** **Heikkinen Energy Securities, LLC.** (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: (1) The Company claimed an exemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R. § 240.15c3-3 (k):(2)(ii). (2) The Company met the identified exemption provisions in 17 C.F.R. § 240.15c3-3(k) throughout the most recent fiscal year without exception. ### **Heikkinen Energy Securities, LLC.** 1, David Heikkinen,swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. David Betkfcinen, Chief Executive Officer January 22, 2021 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.