# ALDWYCH SECURITIES LLC X-17A-5 (2023-03-31) — Broker-dealer annual report

- Company: ALDWYCH SECURITIES LLC
- Form: X-17A-5
- Filed: 2023-03-31
- Period: 2022-12-31
- Accession: 0001577405-23-000001
- CIK: 1577405
- File #: 8-69286
- Type: Broker-dealer
- Material weakness: No
- Auditor: Clifton Larson Allen LLP
- Auditor location: Livingston, NJ
- Contact: John Miller
- Phone: 917-620-6006
- Email: 76@gmaii.com
- Website: gmaii.com
- Signed by: Mark Bishop (Principal)

Original filing: https://www.sec.gov/Archives/edgar/data/1577405/000157740523000001/publicr.pdf

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Aldwych Securities LLC Financial Statement Pursuant to SEC Rule 17a-5 Under the Securities Exchange Act of 1934 December 31, 2022

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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12

> SEC FILE NUMBER 8-69286

### **ANNUAL REPORTS FORM X-17A-5 PART** Ill

**FACING PAGE** 

**Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** 

| FILING FOR THE PERIOD BEGINNING O 1/01/2022 |  | AND ENDING 12/31/2022 |
|---------------------------------------------|--|-----------------------|
|                                             |  |                       |

MM/DD/VY

MM/DD/VY

#### **A. REGISTRANT IDENTIFICATION**

NAME OF FIRM: **12/31/2022** 

TYPE OF REGISTRANT (check all applicable boxes):

~ Broker-dealer D Security-based swap dealer D M ajor security-based swap participant 0 Check here if respondent is also an OTC derivatives dealer

ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)

# 70 Seaview Ave

|                                                                                                       | (No. and Street)                                           |                 |                                            |  |
|-------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------|--------------------------------------------|--|
| Stamford                                                                                              | CT                                                         |                 | 06902                                      |  |
| (City)                                                                                                | (State)                                                    |                 | (Zip Code)                                 |  |
| PERSON TO CONTACT WITH REGARD TO THIS FILING                                                          |                                                            |                 |                                            |  |
| John Miller                                                                                           | 917 -620-6006                                              |                 | nycpa 76@gmaiI.com                         |  |
| (Name)                                                                                                | (Area Code - Telephone Number)                             | (Email Address) |                                            |  |
|                                                                                                       | 8. ACCOUNTANT IDENTIFICATION                               |                 |                                            |  |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*<br>Clifton Larson Allen LLP |                                                            |                 |                                            |  |
|                                                                                                       | (Name - if individual, state last, first, and middle name) |                 |                                            |  |
| 293 Eisenhower Pkwy                                                                                   | Livingston                                                 | NJ              | 07039                                      |  |
|                                                                                                       | (City)                                                     | (State)         | (Zip Code)                                 |  |
| (Address)                                                                                             |                                                            |                 |                                            |  |
| 10/16/2003                                                                                            |                                                            | 655             |                                            |  |
| rte<br>of R,g;suaUOa with PCAOB)(O ap~;~ble)                                                          |                                                            |                 | {PCAOB R,g;stration N,mbe,, ;1 appH<able)I |  |

\* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(l)(ii), if applicable.

**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.** 

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#### OATH OR AFARMAllON

| દ્વાર | Mark Bishop |
|-------|-------------|
|       |             |

|   | I Marl< Bishop |     |  |                                                                 |  | swear {or affirm) that. to the best of my knowledge and belief the |   |
|---|----------------|-----|--|-----------------------------------------------------------------|--|--------------------------------------------------------------------|---|
| , | _              | _ _ |  | finanC1al report pertammg to the firm of Akiwych Sea.uilies lLC |  |                                                                    | • |
|   |                |     |  |                                                                 |  |                                                                    |   |

12/3 1 022 \_ *as* of *r.* \_ \_ 2\_\_\_:\_\_\_, is true and correct.. I further swear(oraffirm} thatneithe,the company nor any partner, ~fficer, director, or equwalent person, as the case may be, has any proprietary inteJ"est in a ny account classified sole ly *as* that ot a customer.

/ Notary ilintic

f

#### Th£\$ filing-• contains (meek ail **applicable bol<es}:**

- \_..,.,,~ (a ) Statement of financial condition.
	- ~ (b) Notes to consolidated statement of fina!Kiai mndition..
	- 0 (cl Statement of income (loss) or, if there is oth~ comprehensive income in the p€riod(s) presented. a statement of comprehensive inrome (as defined in § 210\_1-02 of Regulation S-X}-
	- 0 (d) Statement of cash **flows\_**
	- 0 (e} Statement of changes in stodtho[ders' or partners' oc sole proprietor's equity\_
	- D (fl Statement of changes. in liabilities suoo,dinated t:o daims of aeditors...
	- 0 (g) Notes to consolidated financial statements..
	- D (h) Computation of net capttaf under 17 CfR 240.l Sd-1 or 17 CfR 240\_18a-l, as applicable.
	- D (i} Computation of tangible net worth u nder 17 CFR 240-lSa-2-
	- O ij) Computation fuf-determination of rustomer- reserve requirements pufSUal'lt: t.o Exhib~ **A** to 17 CfR 240.lScl-3.
	- D (k) Computation fCX" determination of sectlfl°ly-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.lSd-3 or Exhibit A to 17 CfR 240\_18a-4, as appficabfe
	- 0 (I) Ccmputation for- Determina tion of PAB Re.qtlirements untie£ Ellhibit A to§ 24(U5c3-3.
	- D (m) lnfocmatioo reJating to possession or a:mtrol requirements fcx- customers under 17 CfR 240.15c3·3-
	- 0 (n) lnfonnation relating to po~ession or control requirements for security-based **swap** customers under 17 CfR 240.15c3-3{p)(l) or 17 CFR 240\_18.l-4, as applicable..
	- □ (o) Reconciliations. indu ding appropriate explanations, of the FOCUS Report with computa:t.ien of net capital or tangible net worth under 17 CfR 240\_15cl-l, *11* CFR 240.18a-l, or 17 CFR 240-lSa--2\_ asappficable. and the reserve requirements under 17 CFR 240\_15c3-3 or 17 CfR 240-lSa-4, as applicabfe, if material t:fiffer-eru:es exist, or a statement that no material differences exist.
	- 0 {p) Summary of fina ncial data for subsidiaries not consolidated in the statement of financial condition.
	- ~ (q ) Oath or affimtation m acconfance with 17 CfR 2.40-17a-5. 17 CfR 240.17a-12, or- 17 CfR 240.18a-7. as applicabte .
	- O (r) Compliance report in aCCOfdance with 17 CfR 240.17a-S Of 17 CFR 240.18a-7, as. appftcabfe..
	- D (s} Exemption report in aca mfance with 17 CFR 240.1 Ja.-S or 17 CfR 240.lSa:-7. as applicable.
	- l!i (t) lndeyeru:fe.nt puhtic accountant's report based on an examination of the statement of financial condffion\_
	- D (u ) Independent public acmuntant's report based oo an examination of the fmanci;d report« finanoaJ statements under 17 CFR 240.Ha-S, 17 C.FR 24tU8a-7, or 17 CTR 240.lra-12. as; appticable
	- IJ M [nde~dent public accountant's. report based on an examination of c:eftain statements in the compliance report under 17 CFR 140.17a--S or 17 CfR 240.18a-7, as appficabl'e.
	- D **{w)** ln.dependent public accountant's.report based on a relliewof ffreexe.mption report under 17 CfR.MiH7a-S or 17 CfR: Z40.18'a-7, asapextabte..
	- D (x} Suppfemental reports oa applying agreed-upon procedures, in accordantt with 17 CfR 240.lSd-le or 17 CfR 240.17a--l l, as appliuhEe.
	- 0 M Recport desaihing any material i~ua.cies found t'O emt or found to have aisted since the date of the prewius audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-Ulk:l-O (zf otfter: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ \_ \_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_
	-
	- *... To request* mnfidenrial *treatment of* certmn *portions of this* filing. *see 17 CFR 240.17a-5f.e}{3} or 17 CFR.* 240-1Ba--7(d}(2J, *as*  applicable.

Signature: -

Prinapal

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"title:

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### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Member Aldwych Securities, LLC Stamford, Connecticut

#### **Opinion on the Financial Statement**

We have audited the accompanying statement of financial condition of Aldwych Securities, LLC (the "Company") as of December 31 , 2022, 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 , 2022, in conformity with accounting principles generally accepted in the United States of America.

#### **Basis for Opinion**

This financial statement is the responsibility of Aldwych Securities LLC's management. Our responsibility is to express an opinion on Aldwych Securities LLC'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 Aldwych Securities 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 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.

We have served as Aldwych Securities LLC's auditor since 201 7.

Livingston, New Jersey March 31, 2023

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### Aldwych Securities LLC Statement of Financial Condition December 31 , 2022

| Assets                                |                  |
|---------------------------------------|------------------|
| Cash                                  | \$<br>28,521     |
| Prepaid expenses                      | 3,232            |
| Total assets                          | \$31,753         |
|                                       |                  |
| Liabilities & Equity                  |                  |
| Liabilities                           |                  |
| Accounts payable                      | \$<br>4,500      |
| Total Liabilities                     | \$4,500          |
|                                       |                  |
| Commitments and Contingencies         |                  |
| Member's Equity                       | \$<br>27,253     |
| Total Liabilities and Member's equity | \$<br>,753<br>31 |

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## Aldwych Securities LLC Notes to Financial Statements December 31, 2022

#### **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 (T epic 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. No revenue has been recognized in the year ended December 31 , 2022

#### **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 , 2022, 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.

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## Aldwych Securities LLC Notes to Financial Statements December 31, 2022

#### **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, which total \$77,690, at no cost to the Company.

#### **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 , 2022, the Company had net capital of \$24,021 which exceeded its required capital by \$19,021 . The Company's ratio of aggregate indebtedness to net capital was .19 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 , 2022 or during the year then ended.

#### **6. Future Operations**

The Company has experienced recurring losses, and negative operating cash flows throughout the year ended December 31 , 2022.

The Company does not have the liquidity required to fund the next twelve months of operations, which raises substantial doubt to continue as a going concern, without additional revenue sources, member capital contributions or debt financing. During the year ended December 31 , 2022, member capital contributions totaled \$60,181. 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.

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## Aldwych Securities LLC Notes to Financial Statements December 31, 2022

### **7. Subsequent Event**

For disclosure purposes in the financial statements, the Company has evaluated subsequent events through March 30, 2023, 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.