# ALDWYCH SECURITIES LLC X-17A-5 (2021-03-31) — Broker-dealer annual report - Company: ALDWYCH SECURITIES LLC - Form: X-17A-5 - Filed: 2021-03-31 - Period: 2020-12-31 - Accession: 0001577405-21-000002 - CIK: 1577405 - File #: 8-69286 - Material weakness: No - Auditor: Sobel & Co. - Auditor location: Livingston, NJ - Contact: John Miller - Phone: 917-620-6006 - Website: google.com - Signed by: Mark Bishop (Principal) Original filing: https://www.sec.gov/Archives/edgar/data/1577405/000157740521000002/public.pdf --- {0}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response .. . . . . . 12,00 ## ANNUAL AUDITED REPORT FORM X-17A-5 PART III | SEC FILE NUMBER | | |-----------------|--| | 8-69786 | | ### 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 BEGINNING 01/01/2020 | | AND ENDING 12/13/2020 | | | |-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-----------------------|--------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Aldwych Securities LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | | 70 Seaview Ave. | | | | | | | (No. and Street) | | | | | Stamffordd | CT | | 06902 | | | (City) | (State) | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
John Miller 917-620-6006 | | | | | | | | | (Arca Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | Sobel & Co. | | | | | | | (Name - if individual, state last, first, middle name) | | | | | 293 Eisenhower Pkwy | Livingston | NJ | 07039 | | | (Address) | (City) | (State) | (Zip Cade) | | | 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 be 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 unless the form displays a currently valid OMB control number. SEC 1410 (11-05) {1}------------------------------------------------ #### OATH OR AFFIRMATION | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Aldwych Securities LLC | | | nt Decamber 81 | 2020 are true and correct. I further swear (or affirm) that | | | neilaer the company nor any partner, principal offect or director has any proprietary interest in any account | | classified solely as that of a customer, except as follows: | | | | | | | | | | | | | | | | | | SAM YOUSSEFI | | | Notery Public | Signature | | Connecticut /rzy Held | Princepa | | My Commission Expires Jun 30, 2028 | Title | | | | | - MARK 300 2021 | | | Notary Patilic | | | This report ** contains (check all applicable boxes): | | | (a) Facing Page. | | | (b) Statement of Financial Condition. | (c) Statement of Income (Loss) or, if there is other comprehensive in the period(s) presented, a Statement | | of Comprehensive Income (as defined in §216.1-02 of Regulation S-X). | | | (d) Statement of Changes in Financial Condition. | | | | (c) Statement of Changes in Steekholders' Equity or Partners' or Sole Proprieters' Capital. | | (1) Statement of Changes in Liabitties Subordinated to Clams of Creditors, | | | (g) Compination of Net Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | | (i) Information Relaining to the Possession or Control Requirements Under Rule 15c3-3. | | | A Reconciliation, molnamy appropriation of the Computation of Net Capital Under Rule 15c3-1 and the | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rate 150-5. | | | () A Recorciliation between the autited statements of Financial Condition with respect to methods of | | consolumation. | | | 1) An Osin or Affirmation. | | | Im) A copy of the SIPC Supplemental Report, | in) A report describing any material nadequaties found to have existed since the dato of the previous andit. | | | | | | 25 For conditions of confidential treatment of verturn portions of this filing, see section 240.17a-51e)(3). | | | | | PART AND AND AND AND AND AND AND AND AND AND AND AND AND AND AND A BREATH AND A BREATH AND A BREATH AND A BREATH AND A BREATH AND A BREATH AND A BREATH AND A BREATH AND A BRE | The Children Children Children | | STATE CONTRACT | And And Book Children
Carlo Partice Carry Province | | | 2018 - 2019 - 12:00 PM IST - 12:00 PM IST - 12:00 - 12:00 PM - 12:00 PM - 12:00 PM - 12:00 PM - 12:00 PM - 12:00 PM - 12:00 PM - 12:00 PM - 12:00 PM - 12:00 PM - 12:00 PM - | | | | | | | | | | | | | | | | | | | | | The state of the country of the states of the states | | | | | | | | | | | | | | | | https://mail.google.com/mail/u/0/?pli=1#inbox?projector=1 {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) 293 Eisenhower Parkway Livingston, NJ 07039-1711 Office: 973.994.9494 Fax: 973.994.1571 wv,rw.Sobe lCoLLC .cum # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member Aldwych Securities LLC ## **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Aldwych Securities LLC ("Company") as of December 31, 2020, and the related notes (collectively, "financial statements"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Aldwych Securities LLC as of December 31 , 2020, in conformity with accounting principles generally accepted in the United States of America. ## **Substantial Doubt About the Company's Ability to Continue as a Going Concern** The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 6 to the financial statements, the Company has suffered reoccurring losses from operations, has negative operating cash flows, and has a net capital deficiency throughout the year, all of which raise substantial doubt about its ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding those matters are also described in Note 6. The financial statement does not include any adjustments that might result from the outcome of this uncertainty. ## **Basis for Opinion** The financial statement is the responsibility of Aldwych Securities LLC's management. Our responsibility is to express an opinion on Aldwych Securities LLC'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 Aldwych Securities LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. ![](_page_2_Picture_10.jpeg) **-A\\\\\\a\** GL08AL {3}------------------------------------------------ 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 statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. Certified Public Accountants We have served as Aldwych Securities LLC's auditors since 2017. Livingston, New Jersey March 30, 2021 ![](_page_3_Picture_5.jpeg) {4}------------------------------------------------ ## Aldwych Securities LLC Statement of Financial Condition December 31, 2020 **Assets** | Cash | \$
8,233 | |---------------------------------------|--------------| | Prepaid expenses | 1.478 | | Due from parent | 7,163 | | Total assets | \$
16.874 | | | | | Liabilities & Equity | | | Liabilities | | | Accounts Payable and accrued expenses | \$
2.270 | | Total Liabilities | \$
2.270 | | Commitments and Contingencies | | | Member's Equity | \$
14,604 | | Total Liabilities and Member's equity | \$
16,874 | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ Aldwych Securities LLC Notes to Financial Statements December 31, 2020 #### **1. Organization** Aldwych Securities LLC (the "Company") is a wholly owned subsidiary of Aldwych Capital Partners LLC (the "Parent"). The Company is a limited liability company and was formed under the laws of the State of New York. The Company is a broker-dealer registered with the Securities and Exchange Commission (the "SEC") and is a member of the Financial Industry Regulatory Authority {"FINRA"). #### **2. Significant Accounting Policies** #### **Basis of Financial Statement Presentation** The financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (''US GAAP"). #### **Use of Estimates** In preparing the financial statements, management is required to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from such estimates and such differences may be material to the financial statements. #### **Revenue Recognition** Revenue from Contracts with Customers (Topic 606), requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company provides advisory services on mergers and acquisitions **(M&A).** Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgement is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. All revenue has been recognized as of a point in time. #### **Income Taxes** As a single member LLC whose Parent is also a single member LLC, the Company's taxable income or loss is reported on the tax returns of its ultimate member. At December 31, 2020, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances may require. {6}------------------------------------------------ Aldwych Securities LLC Notes to Financial Statements December 31 , 2020 #### **3. Related-Party Transactions** The Company maintains an administrative services agreement with the Parent and an Affiliate. Pursuant to the agreement, the Parent and the Affiliate provide accounting, administration, information technology, compliance services, office space, employee services and other services. The Parent and Affiliate provide these services at no cost to the Company. Management has estimated that the value of the services provided to the Company for the year ended December 31 , 2020, was approximately \$58,884. At December 31, 2020, the Company's parent owed the Company \$7,1 63 which is reflected on the Statement of Financial Condition. ## **4. Net Capital Requirements** 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, shall not be less than \$5,000 and maintenance of the ratio of aggregate indebtedness to net capital, both as defined, not to exceed 15 to 1. At December 31 , 2020, the Company had net capital of \$5,963 which exceeded its required capital by \$963. The Company's ratio of aggregate indebtedness to net capital was .38 to 1. The Company operates pursuant to the paragraph (k)(2)(i) exemption provision of the Securities and Exchange Commission Rule 15c3-3, of the customer protection rules, and does not hold customer funds or securities. Therefore, there are no reserve requirements and no possession and control requirements. #### **5. Commitments and Contingencies** The Company had no underwriting commitments, no contingent liabilities and had not been named as defendant in any lawsuit at December 31 , 2020 or during the year then ended. The Company is currently monitoring the recent COVID-19 outbreak and its potential impact on our employees, clients, and operations. While we do not expect that the virus will have a material adverse effect on our operations or financial results at this time, we are unable to predict the impact that COVlD-19 will have in the future due to various uncertainties, including the severity of the disease, the duration of the outbreak, and actions that may be taken by governmental authorities. ### **6. Future Operations** The Company has experienced recurring losses, negative operating cash flows, and has not met their net capital requirements throughout the year ended December 31, 2020. {7}------------------------------------------------ ## Aldwych Securities LLC Notes to Financial Statements December 31 , 2020 The Company does not have the liquidity required to fund the next bivelve months of operations, which raises substantial doubt to continue as a going concern, without additional revenue sources, member capita! contributions or debt financing. During the year ended December 31, 2020, member capital contributions totaled \$42,015. The financial statements do not reflect any adjustments to reflect a liquidation basis The Parent has made a commitment to provide necessary working capital to continue the operations of the Company, when needed. ln addition, the Company expects to receive a material cash success fee for a transaction expected to close in April 2021. ### **7. Subsequent Event** For disclosure purposes in the financial statements, the Company has evaluated subsequent events through March 30, 2021 the date the financial statements were available to be issued and there are no material events that would require adjustment to. or disclosure in, the Company's financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.