# PHILOSMITH SECURITIES LLC X-17A-5 (2021-03-01) — Broker-dealer annual report
- Company: PHILOSMITH SECURITIES LLC
- Form: X-17A-5
- Filed: 2021-03-01
- Period: 2020-12-31
- Accession: 0001650211-21-000001
- CIK: 1650211
- File #: 8-69669
- Material weakness: No
- Auditor: Grassi & Co., CPA's
- Auditor location: New York, NY
- Contact: Edward Cohen
- Phone: 2035576070
- Signed by: Michele C. O'Grady (President, CCO)
Original filing: https://www.sec.gov/Archives/edgar/data/1650211/000165021121000001/public.pdf
---
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#### PHILOSMITH SECURITIES, LLC PHILOSMITH SECURITIES, LLC
#### STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
DECEMBER 31, 2020 DECEMBER 31, 2020
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UNITEDSTATES OMB APPROVAL SECURITIESANDEXCHANGE COMMISSION OMB Number: 3235-0123 Washington, D.C. 20549 Expires: October 31, 2023 UNITEDSTATES OMB APPROVAL SECURITIESANDEXCHANGE COMMISSION OMB Number: 3235-0123 Washington, D.C. 20549 Expires: October 31, 2023
Estimated average burden ANNUAL AUDITED REPORT hours perresponse...... 12.00 Estimated average burden ANNUAL AUDITED REPORT hours perresponse...... 12.00
# FOEXIR); 1| l7IA-5 SEC FILE NUMBER FO:XR)Ti;A-5 SEC FILE NUMBER
\$50721 \$50721
FACING PAGE FACING PAGE
Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder
| PERIOD
BEGINNING
REPORT
REPORT
FOR
FOR
THE
THE
PERIOD
BEGINNING | ENDING
12,31,2020
12,31/2020
01/01/2020
01/01/2020
AND
AND
ENDING | | | |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|--------------------------------------------------------------------|--|
| | MM/DD/YY
MM/DD/YY | | MM/DD/YY
MM/DD/YY | |
| A.
A. | IDENTIFICATION
IDENTIFICATION
REGISTRANT
REGISTRANT | | | |
| PhiloSmith
PhiloSmith
Securities
Securities
LLC
LLC
NAME
NAME
BROKER-DEALER:
BROKER-DEALER:
OF
OF | | | OFFICIAL
OFFICIAL
USE
USE
ONLY
ONLY | |
| PRINCIPAL
PRINCIPAL
PLACE
P.0.
PO.
Box
No.)
No.)
ADDRESS
ADDRESS
PLACE
BUSINESS:
BUSINESS:
(Do
(Do
not
not use
Box
OF
OF
OF
OF
use | | | ID.
No.
FlFlM
l.D. NO.
FIFIM | |
| Six
Landmark
Square
Six
Landmark
Square | | | | |
| | (No.
(No.
and
Street)
Street)
and | | | |
| Stamford
Stamford | CT
CT | 06901
06901 | | |
| (City)
(City) | (State)
(State) | (Zip
(Zip | Code)
Code) | |
| NAME
AND
NUMBER
TELEPHONE
OF
NAME
AND
TELEPHONE
NUMBER
Michele
C.0'Gtady
C.O'Gredy
Michele | IN
CONTACT
PERSON
TO
PERSON
TO
CONTACT
OF
IN | REGARD
TO
THIS
REPORT
REGARD
TO
THIS
REPORT
(203)
(203) | 348-7365
348-7365 | |
| | | (Area
(Area | Code
Code—
Telephone
Telephone
Number)
Number)
— | |
| B.
B. | IDENTIFICATION
ACCOUNTANT
ACCOUNTANT
IDENTIFICATION | | | |
| | | | | |
| INDEPENDENT
PUBLIC
ACCOUNTANT
PUBLIC
ACCOUNTANT
INDEPENDENT
Grassi
Co.,
CPA's
&
CPA's
Grassi
&
Co., | opinion
whose
contained
in
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contained
in
whose
opinion
is | Report*
this
Report* | | |
| | ifindividual,
ifindividual,
last, first,
first,
(Name
(Name
~
state
state
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middle
name)
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| Avenue
488
Madison
488
Madison
Avenue | York
New
New
York | NY
NY | 10022
10022 | |
| (Address)
(Address) | (City)
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(Zip
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| CHECK
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| .Certified
Public
Accountant
.Certified
Public
Accountant | | | | |
| Public
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Public
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| | | | | |
| | | | | |
| Accountant
in
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\*Claimsfor exemptionfrom the requirement that the annual report be covered by the opinion ofan independent public accountant must be supported by a statement offacts and circumstances relied on as the basisfor the exemption. See Section 240.1 7a-5(e)(2) \*Claimsfor exemptionfrom the requirement that the annual report be covered by the opinion ofan independent public accountant must be supported by a statement offacts and circumstances relied on as the basisfor 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 ("'05) unlesstheform displays a currently valid OMB control number. Potential persons who are to respond to the collection of information contained in this form are not required to respond SEC 1410 (1 1'05) unlesstheform displays a currentlyvalid OMB control number.
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#### OATH OR AFFIRMATION OATH 0R AFFIRMATION
| I,
Michele
C. O'Grady
I,
Michele
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swear
swear
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, |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| beiief
financial
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the
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| of
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| neither
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company
nor
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any | officer
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\*\*For conditions ofconfidential treatment ofcertain portions ofthis fiiing, see section 240.1 7a-5(e)(3). "For conditions ofconfidential treatment ofcertain portions ofthisfiling,see section 240.17a-5(e)(3).
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## PHILOSMITH SECURITIES, LLC TABLE OF CONTENTS DECEMBER 31, 2020 PHILOSMITH SECURITIES, LLC TABLE OF CONTENTS DECEMBER 31, 2020
| Number
Page
Page
Number | |
|----------------------------------|--|
| 1
1 | |
| | |
| 2
2 | |
| 3-4
3-4 | |
| | |
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#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Managing Member of PhiloSmith Securities, LLC To the Managing Member of PhiloSmith Securities, LLC
#### Opinion on the Financial Statement Opinion on the Financial Statement
We have audited the accompanying statement of financial condition of PhiloSmith Securities, LLC (the "Company") as of December 31, 2020, 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, 2020 in conformity with accounting principles generally accepted in the United States of America. We have audited the accompanying statement of financial condition of PhiloSmith Securities, LLC (the "Company") as of December 31, 2020, and the related notes (collectively referred to as the"financial statement"). In our 'opinion, the financial statement presents fairly,In allmaterial respects, the financial position of the Company as of December 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
#### B\_asis for Opinion Basis for Opinion
This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company'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 the Company in accordance with the US. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company'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 the Company in accordance with the US. federal securities laws andthe applicable rulesand 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 thatwe plan and perform theaudit 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 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.
mar 00,0343, RC. met 00,0343, RC.
GRASSI & CO., CPAS, P.C. GRASSI & CO., CPAS, P.C.
We have served as the Company's auditor since 2017. We have served as the Company's auditor since 2017.
New York, New York February 25, 2021 New York, New York February 25, 2021
488 MADISON AVENUE, 218T FLOOR, NEW YORK, NY 1002? AN INDEPENDENT FIRM P: 2i2.66'1.6166 ' F: 2I2.755.6748 ' GRASSFCPASCOM ASSOCiATED WiTi—I MOORE NEW YORK | NEW JERSEY IMASSACHUSETTS i FLORIDA GLOBAL NETWORK LIMiTED 488 MADISON AVENUE. 215T FLOOR, NEW YORK, NY 10022AN INDEPENDENT FIRM P: 212.661.6166 - F: 2I2.755.6748 ' GRASSICPAS.COM ASSOCIATED WITH MOORE NEW YORK | NEW JERSEY I MASSACHUSETTS I FLORIDA GLOBAL NETWORK LIMITED
{5}------------------------------------------------
#### CONFIDENTIAL CONFIDENTIAL
#### PHILOSMITH SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 PHILOSMITH SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31,2020
#### ASSETS ASSETS
| equivalents
Cash
and
Cash
and
cash
cash
equivalents
Prepaid
expenses
Prepaid
expenses | \$
\$
100,418
100,418
740
740 | |
|------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|--|
| Total
Assets
Total
Assets | §
101,158
101 | |
#### LIABILITIES AND MEMBER'S EQUITY LIABILITIES AND MEMBER'S EQUITY
| Liabilities
Liabilities | |
|----------------------------------------------------------------------------------------------------------|---------------------|
| liabilities
Accrued
other
liabilities
Accrued
expenses
and
and
other
expenses | MM
\$
24,486 |
| Liabilities
Total
Liabilities
Total | 24,486
24,486 |
| Member's
Equity
Equity
Member's | 76,672
76,672 |
| Liabilities
Equity
Total
Member's
and
and
Member's
Equity
Total
Liabilities | §
101,158
101 |
The accompanying notes are an integral part of this financial statement. The accompanying notes are an integral part of this financial statement.
{6}------------------------------------------------
## PHILOSMITH SECURITIES, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2020 PHILOSMITH SECURITIES, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31,2020
# Note 1 - Organization and Nature ofBusiness: Note 1 - Organization and Nature ofBusiness:
PhiloSmith Securities, LLC (the "Company") is a Limited Liability Company organized under the laws ofDelaware. The Company is a wholly owned subsidiary ofPhilo Smith Capital Corporation, a US Corporation (the "Parent"). Its business is to introduce and advise to stock and mutual insurance companies as well as other financial services companies in mergers, consolidation or business combination, acquisition, sale, purchase, divestiture or distribution, mutual company affiliations, valuations, fairness opinions, equity and debt financing and strategic planning. PhiloSmith Securities, LLC (the "Company") is a Limited Liability Company organized under the laws ofDelaware. The Company is a wholly owned subsidiary ofPhilo Smith Capital Corporation, a US Corporation (the "Parent"). Its business is to introduce and advise to stock and mutual insurance companies as well as otherfinancial services companies in mergers, consolidation or business combination, acquisition, sale, purchase, divestiture or distribution, mutual company affiliations, valuations, fairness opinions, equity and debt financing and strategic planning.
The Company is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member ofthe Financial Industry Regulatory Authority ("FINRA"). The Company is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member ofthe Financial Industry Regulatory Authority ("FINRA").
## Note 2 -Significant Accounting Policies: Note 2 Significant Accounting Policies:
## Cash and Cash Equivalents: Cash and Cash Equivalents:
The Company considers all highly liquid debt instruments with a maturity ofthree months or less when purchased to be a cash equivalent. The Company's cash is held at a financial institution which has Federal Deposit Insurance Corporation ("FDIC") coverage. The Company's cash held at the financial institution may, at times, exceed FDIC covered amounts. The Company considers all highly liquid debt instruments with a maturity ofthree months or less when purchased to be a cash equivalent. The Company's cash is held at a financial institution which has Federal Deposit Insurance Corporation ("FDIC") coverage. The Company's cash held at the financial institution may, at times, exceed FDIC covered amounts.
## Basis ofPresentation: Basis ofPresentation:
This financial statement prepared in conformity with accounting principles generally accepted in the United States ofAmerica 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 statement. Actual results could differ from those estimates. This financial statement prepared in conformity with accounting principles generally accepted in the United States ofAmerica 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 dateofthe financial statement. Actual results could differ from those estimates.
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## PHILOSMITH SECURITIES, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2020 PHILOSMITH SECURITIES, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31,2020
#### Note 3 -— Income Taxes: Note 3 - Income Taxes:
The Company has elected to be treated as a Pass—Through entity for Federal and State income tax purposes. As a result, taxes on the Company's earnings are not provided, as they are the responsibility of the Company's Parent. The Company has elected to be treated as a Pass-Through entity for Federal and State income tax purposes. As a result, taxes on the Company's earnings are not provided, as theyare the responsibility ofthe Company's Parent.
The Company follows the uncertainty in income tax accounting standard. This standard provides applicable measurement and disclosure guidance for uncertain income tax positions. Management has determined that the Company had no uncertain tax positions that would require financial statement recognition. The Company follows the uncertainty in income tax accounting standard. This standard provides applicable measurement and disclosure guidance for uncertain income tax positions. Management has determined that the Company had no uncertain tax positions that would require financial statement recognition.
# Note 4 - Net Capital Requirements: Note 4 - Net Capital Requirements:
As a member of FINRA, the Company is subject to the SEC 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, should not exceed 15 to 1. As ofDecember 31, 2020, the Company had net capital of \$75,932 which was \$70,932 in excess of its required net capital of \$5,000. The Company's netcapital ratio was 0.32 to 1. As a member of FINRA, the Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15034), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to netcapital, both as defined, should not exceed 15 to 1. As ofDecember 31, 2020, the Company had net capital of \$75,932 which was \$70,932 in excess ofits required net capital of \$5,000. The Company's net capital ratio was 0.32 to 1.
# Note 5 -Related Partv Transactions: Note 5 - Related Party Transactions:
The Company entered into an expense sharing agreement with the Parent whereby the Parent would provide certain services required by the Company to operate its business, including employee compensation and benefits, office facilities and services. The Company entered into an expense sharing agreement with the Parent whereby the Parent would provide certain services required by the Company to operate its business, including employee compensation and benefits, office facilities and services.
# Note 6 - Risk and Uncertainties -- COVID—19 Note 6 - Risk and Uncertainties - COVID—19
The pandemic caused by the spread of COVID-19 has impacted most countries, communities, and markets. The extent to which the COVID—19 pandemic may impact the Company's financial condition, liquidity, results of operations, or prospects, will depend on numerous evolving factors that are out ofthe Company's control and are not able to be predicted at this time. The pandemic caused by thespread ofCOVID-l9 has impacted most countries, communities, and markets. The extent to which the COVID-19 pandemic may impact the Company's financial condition, liquidity, results of operations, or prospects, will depend on numerous evolving factors that are out ofthe Company's control and are not able to bepredicted at this time.
## Note 7 -Indemnifications: Note 7 - Indemnifications:
In the normal course of its business, the Company indemnifies and guarantees certain service providers against specified potential losses in connection with their acting as an agent or providing services to the Company. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. In the normal course of its business, the Company indemnifies and guarantees certain service providers against specified potential losses in connection with their acting as anagent or providing services to the Company. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.