# CERES SECURITIES, LLC X-17A-5 (2021-01-29) — Broker-dealer annual report - Company: CERES SECURITIES, LLC - Form: X-17A-5 - Filed: 2021-01-29 - Period: 2020-12-31 - Accession: 0001645711-21-000002 - CIK: 1645711 - File #: 8-69637 - Material weakness: No - Auditor: Stickley, Larry A - Auditor location: South Bend, IN - Contact: Steven L Cardinal - Phone: 574-367-4530 - Signed by: Steven L Cardinal (President / CFO / CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1645711/000164571121000002/CoverReports123120.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 | |-----------------| | 8-69637 | 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 001/01/20 | | AND ENDING | 12/31/20 | | |-------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|-------------------|------------------------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Ceres Securites, LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
806 Howard St Ste 200 | | OFFICIAL USE ONLY | | | | | | | FIRM I.D. NO. | | | | (No, and Street) | | | | | South Bend | Indiana | | 46617 | | | (City) | (State) | | (Zip Code) | | | Steven L Cardinal | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
B. ACCOUNTANT IDENTIFICATION | | 574-367-4530
(Area Code - Telephone Number) | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
(Name - if individual, state last, first. middle name) | | | | | (Address) | (Cily) | (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 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 | Ceres Securites, LLC | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
110 as | |-------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------| | of December 31st | , 2020 are true and correct. I further swear (or affirm) that | | classified solely as that of a customer, except as follows: | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | | | | | | | | Signature | | | President/ CEOJ CCO | | | SANDHA L FISHER
Title
St. Joseph County
My Commission Expires
Osteber 24, 2027 | | Notary Public | | This report \*\* contains (check all applicable boxes): - (a) Facing Page. - V (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 §210.1-02 of Regulation S-X). - (d) Statement of Changes in Financial Condition. - (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - ﺓ (g) Computation of Net Capital. - (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. - (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - (i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of consolidation. - (1) An Oath or Affirmation. - (m) A copy of the SIPC Supplemental Report. - (n) A report describing any material inadequacies found to existed since the date of the previous audit. \*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). {2}------------------------------------------------ # Ceres Securities LLC Financial Statements as of and for the Year Ended December 31, 2020 {3}------------------------------------------------ # **Ceres Securities LLC Statement of Financial Condition For the Period Ended December 31, 2020** | ASSETS | | |----------------------------------------------|--------------| | Cash and cash equivalents | \$
66,014 | | Receivable from brokers or dealers | - | | Property and equipment, net | - | | Goodwill and intangile assets, net | - | | Other assets | - | | TOTAL ASSETS | \$
66,014 | | LIABILITIES & EQUITY | | | Liabilities | | | Accounts payable | \$
- | | Accrued compensation and commissions payable | - | | Accrued interest | - | | Accrued management fees | - | | Accrued real estate taxes | - | | Other liabilities | - | | Total Liabilities | - | | Equity | | | Members equity | 100 | | Additional paid in capital | 2,805,702 | | Retained Earnings | (2,739,788) | | Total Equity | 66,014 | | TOTALLIABILITIES & EQUITY | \$
66,014 | | | | {4}------------------------------------------------ # **Ceres Securities LLC Statement of Income For the Period Ended December 31, 2020** | Income | | |---------------------------------|-----------------| | Sales income | \$
255,267 | | Total income | 255,267 | | Operating expenses | | | Salaries and wages | 319,835 | | Sales commissions | 147,545 | | Payroll taxes | 332,391 | | Employee benefits | - | | Travel, meals and entertainment | 2,412 | | Total operating expenses | 802,183 | | Other expenses | | | Legal and accounting | 6,321 | | Marketing | - | | Rent | 35,064 | | Telephone | 348 | | Utilities | 168 | | Insurance | 2,044 | | Regulatory fees | 15,060 | | Total other expenses | 59,005 | | Total expenses | 861,188 | | Net income (loss) | \$
(605,921) | {5}------------------------------------------------ # **Ceres Securities LLC Statement of Cash Flows For the Period Ended December 31, 2020** | Net income from operations | | (605,921) | | |------------------------------------------|----|-----------|--| | Add back non-cash expenses: | | | | | Depreciation and mmortization | | - | | | Net cash flow from operations | | (605,921) | | | Sources (uses) of cash: | | | | | Accounts receivable | | - | | | Liabilities | | - | | | Other assets | | - | | | Total sources (uses) of cash | | - | | | Net cash flow from operating activities | | (605,921) | | | Cash flow from investing activities: | | | | | Fixed Assets (Addition) Disposition | | - | | | Net cash flow from investing acitivities | | - | | | Cash flow from financing activities: | | | | | Loan proceeds | | - | | | Principle payments on notes | | - | | | Capital stock | | - | | | Paid-in capital | | 630,726 | | | Dividends paid | | - | | | Retained earnings | | - | | | Net cash flow from financing activities | | 630,726 | | | Net increase (decrease) in cash | | 24,805 | | | Cash at beginning of period | | 41,209 | | | Cash and equivalents at end of period | \$ | 66,014 | | {6}------------------------------------------------ # **Ceres Securities LLC Statement of Changes in Equity For the Period Ended December 31, 2020** | | | | Additional paid | Retained | | |-----------------------------------|----------------|-----|-----------------|-------------------|--------------| | | Members equity | | in capital | earnings | Total | | Balance at January 1, 2020 | \$ | 100 | \$
2,174,976 | \$
(2,133,867) | \$
41,209 | | Net income (loss) for the period | | - | - | (605,921) | (605,921) | | Capital contributions | | - | 595,146 | - | 595,146 | | Members shared expenses agreement | | - | 35,580 | - | 35,580 | | Balance at December 31, 2020 | \$ | 100 | \$
2,805,702 | \$
(2,739,788) | \$
66,014 | {7}------------------------------------------------ ### **Ceres Securities LLC Statement of Changes in Liabilities Subordinated to Claims of General Creditors For the Period Ended December 31, 2020** Balance at January 1, 2020 - Additions - Deductions - Balance at December 31, 2020 - {8}------------------------------------------------ ### **Ceres Securities LLC Computation of Net Capital Computation for Determination of Reserve Requirements Reconcilement of of Computation of NC and Determination of RR For the Period Ended December 31, 2020** #### Computation of Net Capital | Net Capital | \$
66,014 | |--------------------------|--------------| | Total Liabilities | \$
- | | Less NonAllowable Assets | \$
- | | Less Illiquid Assets | \$
- | | Total Assets | \$
66,014 | | Computation for Determination of Reserve
Requirements | | |----------------------------------------------------------|-------------| | Limited Broker (Agent) | \$
5,000 | Net Capital Requirement for Ceres Securities LLC \$ 5,000 | Reconcilement of of Computation of Net
Capital | | |------------------------------------------------------|--------------| | Calculated Net Capital | \$
66,014 | | Less Net Capital Requirement for
Ceres Securities | \$
5,000 | | Excess Net Capital for
Ceres Securities LLC | \$
61,014 | #### Footnotes: No material differences exists between the financial statement computations of Net Capital and the computations included in the companies cooresponding form X-17A-5 PART IIA filing as of December 31st, 2020. {9}------------------------------------------------ ### **Ceres Securities, LLC Notes to Statement of Financial Condition For the Period Ended December 31, 2020** #### **General and Summary of Significant Account Policies** #### **Description of Business** Ceres Securities LLC (the "Firm") is a Limited Liability Company formed on May 20th, 2015 with the Secretary of State in Delaware. The firm is wholly owned subsidiary of Ceres Partners LLC, the sole member. Ceres Partners makes capital contributions to the firm, and in addition, has an expense sharing agreement to cover operating expenses such as rent and utilities. The Office of Supervisory Jurisdiction is located at 806 Howard Street, Ste 200 in South Bend, Indiana. The firm is a registered broker dealer with the Securities Exchange Commission (SEC) and a member of FINRA. Steve Cardinal serves as the Firms President, Managing Director, General Securities Principal, Chief Compliance Officer, and FinOP. Barbara Keady supervises the Hingham, MA branch. The Firm serves as a Placement Agent to the single issuer fund, Ceres Farms, LLC. Ceres Securities and the fund only engage with sophisticated and accredited investors. #### **Basis of Presentation** The statement of financial condition is prepared in accordance with accounting principals generally accepted in the United States of America. #### **Cash and Cash Equivalents** The firm holds multiple deposit accounts that are immediately liquid. #### **Income Taxes** The firm has a single member LLC, and as such, is not responsible for income tax. Income or loss attributed to the Firm is passed through the sole member in accordance with FASB topic 740. #### **Regulatory Requirements** Ceres Securities does not handle investor funds or securities. It relies on the Exemption from SEC Rule 15c3-3(k)(2)(i). Ceres Securities LLC meets or exceeds Net Capital Requirements for all periods within the reporting period. Excess Net Capital has been sufficient to allow expansion and/or changes to the Firm. No material difference exists between the financial statement computations of Net Capital and the computations included in the companies corresponding form X-17a-5 PART IIa filing as of December 31st, 2020. #### **Subsequent Events** Management has reviewed subsequent events and found that there are no material subsequent events that would require recognition or disclosure in the notes to the financial condition. {10}------------------------------------------------ ### Duly Authorized Officer Affirmation Pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 December 31st, 2020 Ceres 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"). Pursuant to 17 C.F.R. § 240.17a-5(e)(1)(A), the Company is exempt from the requirement to engage an independent public accountant to provide reports required under 17 C.F.R. § 240.17a-5(d)(1)(i)(C). This Duly Authorized Officer Affirmation was prepared as required by under 17 C.F.R. § 240.17a-5(e)(1) and (2). To the best of its knowledge and belief, the Company states the following: The financial report is true and correct. Neither the broker or dealer, nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as customer. Dated January 28th, 2021 Name: Steven L Cardinal Title: President CFO/CCO {11}------------------------------------------------ # Ceres Securities, LLC #### Exemption Report ### Pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 December 31, 2020 Ceres 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)(1) 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)(1). - 2. The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3(k)(1) throughout the most recent fiscal year without exception. I, Steven Cardinal certify that, To the best of my knowledge and belief, this Exemption Report is true and correct. Dated January 28th, 2021 Name: Steven L Cardinal Title: Pres / CFO / CCO {12}------------------------------------------------ | SIPC-7 | |----------------| | (36-REV 12/18) | ### SECURITIES INVESTOR PROTECTION CORPORATION P.O. Box 92185 Washington, D.C. 20090-2185 202-371-8300 General Assessment Reconciliation ![](_page_12_Picture_2.jpeg) For the fiscal year ended 12/31/2020 (Read carefully the instructions in your Working Copy before completing this Form) #### TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS 1. Name of Member, address, Designated Examining Authority, 1934 Act registration no. and month in which liscal year ends for purposes of the audit requirement of SEC Rule 17a-5: | ED AADC 220
99537
FINRA DEC
CERES SECURITIES LLC
806 HOWARD ST STE 200
SOUTH BEND, IN 46617-1578 | 110000 11 000 000 0000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
mailing label requires correction, please e-mail
any corrections to form@sipc.org and so
indicate on the form filed.
Name and telephone number of person to
contact respecting this form.
STEVE CARDINAL
574-367-4530 | |-----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 2. A. General Assessment (item 2e from page 2) | 382.90 | | B. Less payment made with SIPC-6 filed (exclude interest)
8/4/20 | 56
246. | | Date Paid | | | C. Less prior overpayment applied | | | D. Assessment balance due or (overpayment) | | | E. Interest computed on late payment (see instruction E) for days at 20% per annum | | | F. Total assessment balance and interest due (or overpayment carried forward) | 136.34 | | G. PAYMENT: V the box
Check mailed to P.O. Box Funds Wired J
ACH U
136.34
Total (must be same as F above) | | | H. Overpayment carried forward | | | 3. Subsidiaries (S) and predecessors (P) included in this form (give name and 1934 Act registration number); | | The SIPC member submitting this form and the person by whom it is executed represent thereby that all information contained herein is true, correct and complete. | CERES SECURITIES | (Name of Corporation, Partnership or other organization) | |------------------|----------------------------------------------------------| | | | | | (Authorized Signalure) | | RESIDENT | CFO /CCO | Mater If ----------------------- Dated the 28 day of JANUARY This form and the assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form for a period of not less than 6 years, the latest 2 years in an easily accessible place. | | | Received | Reviewed | | |--|--------------------------|----------|-----------------|--------------| | | Postmarked Daloulations | | Documentation - | Forward Copy | | | | | | | | | | | | | {13}------------------------------------------------ ### DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT Amounts for the fiscal period beginning 1/1/2020 and ending 12/31/2020 | | | Eliminate cents | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|------------------------| | Item No.
2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030) | | \$ 255 267 | | 2b. Additions:
(1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and
predecessors not included above. | | | | (2) Net loss from principal transactions in securities in trading accounts. | | | | (3) Net loss from principal transactions in commodities in trading accounts. | | | | (4) Interest and dividend expense deducted in determining item 2a. | | | | [5] Net loss from management of or participation in the underwriting or distribution of securities. | | | | (6) Expenses other than advertising, printing, registration tees and legal fees deducted in determining net
profit from management of or participation in underwriting or distribution of securities. | | | | (7) Net loss from securities in investment accounts. | | | | Total additions | | | | 2c. Deductions:
(1) Revenues Irom the distribution of shares of a registered open end investment company of unit
investment trust, from the sale of variable annuities, from the business of insurance, from investment
advisory services rendered to registered investment companies or insurance company separate
accounts, and from transactions in security futures products. | | | | (2) Revenues from commodity transactions. | | | | (3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with
securities transactions. | | | | (4) Reimbursements for postage in connection with proxy solicitation. | | | | (5) Net gain from securities in investment accounts. | | | | (6) 100% of commissions and markups earned from transactions in (i) certificates of deposit and
(ii) Treasury bills, bankers acceptances or commercial paper that mature nine months or less
from issuance date. | | | | (7) Direct expenses of printing advertising and legal tees incurred in connection with other revenue
related to the securities business (revenue defined by Section 16(9)(L) of the Act). | | | | (8) Other revenue not related either directly or indirectly to the securities business.
(See Instruction C): | | | | (Deductions in excess of \$100,000 require documentation) | | | | (9) (i) Total interest and dividend expense (FOCUS Line 22/PART IIA Line 13,
Code 4075 plus line 2b(4) above) but not in excess
of total interest and dividend income. | -D- | | | (ii) 40% of margin interest earned on customers securities
accounts (40% of FOCUS line 5, Code 3960). | - 0 - | | | Enter the greater of line (i) or (ii) | | - 0- | | Total deductions | | -0- | | 2d. SIPC Net Operating Revenues | | \$ 255 267. | | | | 382.90 | | 2e. General Assessment @ . 0015 | | (to page 1, line 2.A.) | {14}------------------------------------------------ # Ceres Securities, LLC Report for Material Inadequacies For the Period Ended December 31, 2020 CCO / CFO Attestation: Ceres Securities LLC has met all firm requirements for financial and reserve requirements during 2020. Steven L Cardinal CFO / CCO Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.