# AXOS INVEST LLC X-17A-5 (2025-02-28) — Broker-dealer annual report - Company: AXOS INVEST LLC - Form: X-17A-5 - Filed: 2025-02-28 - Period: 2024-12-31 - Accession: 0001613950-25-000002 - CIK: 1613950 - File #: 8-69507 - Type: Broker-dealer - Material weakness: No - Auditor: Assurance Dimensions - Auditor location: Tampa, FL - Contact: Derrick K. Walsh - Phone: (858) 649-2165 - Email: dwalsh@axosbank.com - Website: axosbank.com - Signed by: Derrick K. Walsh (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1613950/000161395025000002/public.pdf --- {0}------------------------------------------------ # **Axos Invest LLC** Statement of Financial Condition December 31, 2024 {1}------------------------------------------------ ### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER # **ANNUAL REPORTS FORM X-17A-5 PART III** **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 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 01/01/2024 12/31/2024 MM/DD/YY MM/DD/YY # **A. REGISTRANT IDENTIFICATION** #### NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Axos Invest LLC TYPE OF REGISTRANT (check all applicable boxes): ☐ Broker-dealer ☐ Security-based swap dealer ☐ Major security-based swap participant ☐ Check here if respondent is also an OTC derivatives dealer ■ ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) #### \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 9205 West Russell Road Suite 400 | | | (No. and Street) | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|------------------------------------------------------------|--------------------------------------------|--------------------------------------------------------------------------------------------------------------|--| | Las Vegas
_____________________________________________________________________________________ | | NV | | 89148 | | | (City) | | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Derrick K. Walsh | | (858) 649-2165 | | dwalsh@axosbank.com
_____________________________________________________________________________________ | | | (Name) | | (Area Code – Telephone Number) | (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Assurance Dimensions
_____________________________________________________________________________________ | | | | | | | | | (Name – if individual, state last, first, and middle name) | | | | | 4920 W Cypress Street Suite 102
_____________________________________________________________________________________ | | Tampa | FL | 33607 | | | (Address) | | (City) | (State) | (Zip Code) | | | 4/13/2010
_____________________________________________________________________________________ | | | 5036 | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | \* 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)(1)(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 OMB control number.** {2}------------------------------------------------ #### OATH OR AFFIRMATION | Derrick K. Walsh | , swear (or affirm) that, to the best of my knowledge and belief, the | | |------------------------------------------------------------|-----------------------------------------------------------------------|-------| | financial report pertaining to the firm of Axos Invest LLC | | as of | 12/31 2 024 \_\_ is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. ![](_page_2_Picture_3.jpeg) | Signature: | | |-------------------------|--| | Title: | | | Chief Financial Officer | | Notary Public #### This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - [c] Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - O (d) Statement of cash flows. - [ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ (f) Statement of changes in liabilities subordinated to claims of creditors. - [ (g) Notes to consolidated financial statements. - [ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - [ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - @ (g) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - [ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - □ (z) Other: - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {3}------------------------------------------------ #### **Report of Independent Registered Public Accounting Firm** 1 #### **Financial Statement** Statement of Financial Condition 2 Notes to Financial Statement 3 Page {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # ASSURANCEDIMENSIONS #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM #### To the Member of Axos Invest LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Axos Invest LLC as of December 31, 2024 and the related notes (collectively refecred to as the "financial statement"). In our opinion, the statement of financial condition presents faily, in all material respects, the financial position of Axos Invest LLC as of December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This financial statement is the responsibility of Axos Invest LLC management. Our responsibility is to express an opinion on Axos Invest LLC financial statement based on our andit. 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 Axos Invest LLC in accordance with the U.S. federal securities laws and the applicable cules and regulations of the U.S. Securities and Exchange Commission ("SEC") and the PCAOB. We conducted our andit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assusance about whether the financial statement is free of material misstatement, whether due to eccor or frand. Our andit included performing procedures to assess the cisks 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 andit provides a reasonable basis for our opinion. Assurance Dimensions Coral Springs, Florida February 28, 2025 ASSURANCE DIMENSIONS, LLC also d/b/a McNAMARA and ASSOCIATES, LLC TAMPA BAY: 4920 W Cypress Street, Suite 102 | Tampa, FL 33607 | Office: 813.443.5048 | Fax: 813.443.5053 JACKSONVILLE: 7000 Belfort Parkway, Suite 290 | Jacksonville, FL 32256 | Office: 888.410.2323 | Fax: 813.443.5053 ORLANDO: 1800 Pembrook Drive, Suite 300 | Orlando, FL 32810 | Office: 888.410.2323 | Fax: 813.443.5053 SOUTH FLORIDA: 3111 N. University Drive, Suite 621 | Coral Springs, FL 33065 | Office: 754.800.3400 | Fax: 813.443.5053 www.assurancedimensions.com Alaxines Clearland in the insteans and the All All All Art Allent In collections and Macches, II (C) mille and Species) and productions includinal material contributions and vices to its clients, and AD Advison provide tax and business considing sendom to their clients. AD Addison, and its subsidiary entitles are not librened (DA fron. 1 {5}------------------------------------------------ # **Axos Invest LLC Statement of Financial Position For the Year Ended December 31, 2024** | Assets | | |--------------------------------------------|---------------| | Cash | \$
586,837 | | Securities owned, at fair value | 13,037 | | Prepaid expenses | 50,123 | | Deposit at broker-dealer | 25,000 | | Tax benefit from Parent | 25,000 | | Other receivable from affiliated companies | 40,728 | | Total assets | 740,725 | | Liabilities and Member's Equity | | | Liabilities | | | Accounts payable and accrued expenses | 48,072 | | Due to affiliated companies | 56,206 | | Total liabilities | 104,278 | | Commitments and Contingencies (See Note 4) | — | | Member's Equity | 636,447 | | Total liabilities and member's equity | \$
740,725 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ # **Axos Invest LLC Notes to Financial Statement For the Year Ended December 31, 2024** #### **1. Organization and Nature of Business Activity** Axos Invest LLC (the "Company") is a limited liability company registered as a securities broker-dealer with the U.S. Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company is a wholly owned subsidiary of Axos Securities, LLC (the "Parent"), which is consolidated into Axos Financial, Inc. ("Financial"). The Company executes trades for Axos Invest, Inc. ("Affiliate"), a registered investment advisor, and it clears trades through Axos Clearing LLC ("Clearing"). The Company does not carry securities accounts for customers or perform custodial services and, accordingly, claims exemption from Rule 15c3-3 of the Securities Exchange Act of 1934. #### **2. Summary of Significant Accounting Policies Basis of Presentation** The Company's financial statement has been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") as determined by the Financial Accounting Standards Board ("FASB") contained in the Accounting Standards Codification ("ASC"). #### **Use of Estimates** The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from these estimates. #### **Cash** Cash consists of cash held at Axos Bank, a related party, which at times may exceed federally insured limits. The Federal Deposit Insurance Corporation ("FDIC") insures up to \$250,000 for each depositor. The Company has not experienced any losses and does not believe they are exposed to any significant credit risk. As of December 31, 2024, the Company has \$336,837 of cash in excess of the FDIC limit. #### **Recently Adopted Accounting Standards** In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which requires incremental disclosures about reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker ("CODM") and (2) included in the reported measure of segment profit or loss. The new standard also requires companies to disclose the title and position of the individual (or the name of the committee) identified as the CODM, allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources, and is applicable to companies with a single reportable segment. The requirements are effective for annual reporting periods beginning on January 1, 2024, and are required to be applied retrospectively. The Company has adopted the additional disclosure requirements under ASU 2023-07. The additional requirements did not have a material impact on the financial statements. #### **Securities Transactions** Transactions in securities are recorded on a trade date basis. #### **Allowance for Credit Losses** The Company accounts for estimated credit losses on financial assets measured on an amortized cost basis and certain off-balance sheet credit exposures in accordance with FASB ASC 326-20, Financial Instruments – Credit Losses. FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financial assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company did not have an allowance for credit losses at December 31, 2024. {7}------------------------------------------------ # **Axos Invest LLC Notes to Financial Statement For the Year Ended December 31, 2024** #### **Fair Value of Financial Instruments** As of December 31, 2024, the Company owned long equity positions carried at a fair value of \$13,037, which are held at Clearing.. Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. U.S. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 inputs include quoted prices in active markets for identical assets or liabilities in active markets that the entity access to as of the measurement date. Level 2 inputs include observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 inputs are unobservable and supported by little or no market activity and are significant to the fair value of the assets or liabilities. The Company's investments at December 31, 2024 comprise publicly traded exchange-traded funds (ETFs) with Level 1 inputs. The fair value is determined through quoted prices of identical assets on public stock exchanges (e.g., NYSE, NASDAQ). Carrying amount is the estimated fair value for cash, deposits at broker dealer, other assets, due to affiliated companies, and accounts payable and accrued expenses. #### **Guarantees** The Company in its normal course of business enters into legal contracts containing representations and warranties that provide general indemnifications. Although the Company's maximum exposure under these arrangements is not defined, as claims may be unasserted, based on its experience, the Company expects the risk of loss to be remote. #### **3. Related Party Transactions** The Company and its affiliates maintain agreements to share administrative services (the "Expense Sharing Agreements"). In accordance with the Expense Sharing Agreements, the Company reimburses its affiliates monthly for a proportional share of salaries and related expenses of personnel employed by the affiliates who provide services to the Company, rent expense, and general and administrative expense. As of December 31, 2024, the Company had a payable due to the affiliated companies of \$56,206, largely comprised of a payable to Clearing for wealth management pass-through revenue. Additionally, as of December 31, 2024, tthe Company had a receivable due from the affiliated companies of \$40,728, which consists mainly of referral fees due from Axos Bank (an affiliated company) to the Company. #### **4. Income Taxes** The Company is a single-member limited liability company and is treated as a disregarded entity not subject to income taxes for federal and state tax purposes. The income and losses of the Company pass through to the Parent who incurs the tax obligation or receives the tax benefit. Consolidated tax results are distributed from the Parent as if the Company files on a separate return basis and are calculated utilizing the Parent's tax rate multiplied by Pre-Tax Book Income. The Company recognized an overall income tax benefit of \$361,000 during 2024. Following the cash receipt from the Parent, the Company had a remaining receivable of \$25,000 for an income tax benefit from the Parent at December 31, 2024. #### **5. Commitments and Contingencies** Customers' securities transactions are introduced on a fully-disclosed basis to its clearing broker. The clearing broker carries all the customer accounts and is responsible for collection and payment of funds and receipt and delivery of securities relative to customer transactions. These transactions may expose the Company to off-balance-sheet risk, wherein the clearing broker may charge the Company for any losses it incurs if customers are unable to fulfill their contractual commitments and margin requirements are not sufficient to fully cover losses. As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing broker, the Company believes there is no maximum amount assignable to this right. {8}------------------------------------------------ ## **Axos Invest LLC Notes to Financial Statement For the Year Ended December 31, 2024** #### **5. Commitments and Contingencies (continued)** The Company has the right to pursue collection or performance from the counterparties who do not perform under their contractual obligations. The Company seeks to minimize this risk through procedures designed to monitor the creditworthiness of its customers and to ensure that customer transactions are executed properly by the clearing broker, subject to the credit risk of the clearing broker. The Company maintains a minimum deposit of \$25,000 with its clearing broker. The Company had no underwriting commitments, no equipment leases, and had not been named as defendant in any lawsuit at December 31, 2024 or during the year then ended. The Company is a lessee in a month-to-month sublease agreement for office space with Financial which is mutually cancellable by either party. #### **6. Net Capital Requirements** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (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 in Rule 15c3-1, shall not exceed 15 to 1. At December 31, 2024, the Company had net capital of \$515,799, which was \$415,799 in excess of its required net capital of \$100,000. The Company's aggregate indebtedness to net capital ratio was 20.22%. There were no material inadequacies in the amount reported as Net Capital in the audited Computation of Net Capital and the broker-dealer's corresponding Part II of the FOCUS report required under Rule 15c3-1. The Company does not handle cash or securities on behalf of customers. Therefore, the Company is exempt from the SEC rule 15c3-3. #### **7. Segment Reporting** The Company is engaged in a single line of business as a securities broker-dealer. The Company has identified its Chief Financial Officer as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business and manage the Company. Additionally, the CODM uses excess net capital (see Note 5), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends, and manage the Company. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. The Company's segment revenue and expenses are in line with what is in the Company's statement of income and includes all significant categories that are provided to the CODM for review. Also, the segment assets are the same as those reported in the Company's statements of financial condition. #### **8. Financial Support** Financial continues to fund the operations of the Company and intends to do so in the future. This allows the Company to continue its operations. Had additional capitalization not been acquired the Company would not have been able to continue as a going concern. **9.Subsequent Even** #### **9. Subsequent Events** Subsequent events have been reviewed through February 28, 2025, the date the financial statement was available to be issued. There have been no subsequent events requiring recognition or disclosure in the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.