# LEONIS SECURITIES, LLC X-17A-5 (2019-02-20) — Broker-dealer annual report
- Company: LEONIS SECURITIES, LLC
- Form: X-17A-5
- Filed: 2019-02-20
- Period: 2018-12-31
- Accession: 0001676691-19-000001
- CIK: 1676691
- File #: 8-69797
- Material weakness: No
- Auditor: Rubio CPA, PC
- Auditor location: Atlanta, GA
- Contact: Robert Koven
- Phone: 212-804-8816
- Signed by: Robert Koven (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1676691/000167669119000001/lsaudit1.pdf
---
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UNlTEDST A TES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
OMB APPROVAL OMB Number: 3235-01 23 Expires: August 31,2020 Estimated average burden hours par response ...... 1 2.00
# **ANNUAL AUDITED REPORT FORM X·17A-5 PART Ill**
| | SEC FILE NUMBER |
|---------|-----------------|
| B-69797 | |
FACI NG 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 01/01/18 | | AND ENDING 12/31 | /18 | |
|----------------------------------------------------------------------------------------------|-------------------------------------------------------|-----------------------------------------------------|------------------------------------|--|
| | MMfDD!YY | | ----------------------
MMIDD/YY | |
| | A. REGISTRANT IDENTIFICATION | | | |
| AME oF BROKER-DEALER: Leon is Securities, LLC | | | OFFICIAL USE ON I! Y | |
| ADDRESS OF PR1 ClPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
230 Park Ave, 3rd Floor | | | FIRM I.D. NO. | |
| | | | | |
| | (No. and Street) | | | |
| New York | NY | | 10169 | |
| (City) | (State) | | (Z1p Coli~:) | |
| NAME AND TELEPHONE | | UMBER OF PERSON TO CO TACT IN REGARD TO THJS REPORT | | |
| Robert Koven | | | (212) 804-8816 | |
| | | | (Area Code- Telephone Number) | |
| | B. ACCOUNTANT IDENTIFICATION | | | |
| | | | | |
| lNDEPE DENT PUBLIC ACCOUNT ANT whose opinion is contained i | | n this Report* | | |
| Rubio CPA, PC | | | | |
| | (Name- if individual. state last, first, middle name) | | | |
| 900 Circle 75 Parkway, Suite 1100 Atlanta | | GA | 30339 | |
| (Address) | (City) | (State) | (Zip Code) | |
| C HEC K O NE: | | | | |
| lvlcertified Public Accountant | | | | |
| Public Accountant | | | | |
| | | | | |
| B
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 independenJ 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 (06-02)
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#### **OATH OR AFFIRMATION**
| __________
I, _R_o_b_e_rt_K_o_v_e_n _
_ _ _ _ _ | ____
__
, swear (or affirm) that, to the best of
_ _ _ |
|-----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
| | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of |
| Leonis Securities, LLC | --------------------------------------------------'as |
| of December 31 | 2018
are true and correct. I further swear (or affirm) that |
| | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account |
| classified solely as that of a customer, except as follows: | |
| | |
| | S1gnature
CEO |
| | Title |
| Notary Public | ----
L(R;. t.~f(l( |
| | ~ l'o>IY Publot St ~l' of New York |
| Th is report** contains (check all applicable boxes): | NO. OIWt G/0219&
I'••·'' :oc I Bron, (Gunty |
| 0
(a) Facing Page. | l.ly(coro,m rt\ol)n txprrc' Mdr 9, 20 21 |
| (b) Statement of financial Condition. | |
| (c) Statement of Income (Loss). | |
| (d) Statement of Changes in Financial Condition. | |
| (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | |
| (t) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | |
| (g) Computation of Net Capital. | |
| (h) Computation for Determination of Reserve Requirements Pursuant to Rule I Sc3-3. | |
| (i) information Relating to the Possession or Control Requirements Under Rule 15c3-3.
0 G) | A Reconciliation, including appropriate explanation of the Computation ofNet Capital Under Rule 15c3-l and the |
| | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. |
| | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of |
| consolidation. | |
| ~ (I) An Oath or Affirmation. | |
| ~ (m) A copy of the SIPC Supplemental Report. | |
D (n) A report describing any material inadequacies found to exist or found to have existed since the date oft he previous audit.
*\*\*For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3).*
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# **LEONIS SECURITIES, LLC**
Financial Statements As of December 31 , 2018 With Report of Independent Registered Public Accounting Firm
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# RUBIO CPA, PC CERTIFIED PUBLIC ACCOUNTANTS
2 72 7 Paces Ferry Road SE Building 2, Suite 1680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 7 70 838-7123
### REPORT OF JNDEPENDENT REGISTERED PUBLIC ACCOUNTING Fffi.M
To the Member of Leonis Securities, LLC
#### Opinion on the Financial Statements
We have audited the accompanying statement of financial condition of Leon is Securities, LLC (the "Company") as of December 31, 2018, the related statements of operations, changes in member's equity, and cash flows for the year then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
#### Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. 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 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 statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement to the financial statements, whether due to error or fraud, and perfonning procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. 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 statements. We believe that our audit provides a reasonable basis of our opinion.
#### Supplemental (nformation
The information contained in Schedules I, II and III has been subjected to aud it procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the information in Schedules I, ll and Jll reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the
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information presented in the accompanying schedules. In forming our opinion on the accompanying schedules, we evaluated· whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the aforementioned supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
We have served as the company's auditor si nce 2016.
February 11 , 2019
Atlanta, Georgia AA t(J~,r;v
Rubio CPA, PC
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## LEONIS SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31 , 2018
| Assets | |
|---------------------------------------|--------------|
| Cash | \$
92,235 |
| Prepaid expenses and deposits | 5,015 |
| Total assets | \$
97 250 |
| Liabilities and Member's Equity | |
| Liabilities | |
| Accounts payable | \$
2,997 |
| Due to parent | 8,858 |
| Total liabilities | 11,855 |
| Member's equity | 85,395 |
| Total liabilities and member's equity | \$
97,250 |
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## LEONIS SECURITIES, LLC STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31 , 2018
| Revenues | |
|----------------------------------|---------------|
| Investment banking; M&A advisory | 664,500
\$ |
| Total revenues | 664,500 |
| Expenses | |
| Compensation and benefits | 91 ,293 |
| Professional services | 36,794 |
| Occupancy | 16,052 |
| IT, data and communications | 3,348 |
| Other operating expenses | 10,766 |
| Total expenses | 158,253 |
| Net income | \$
506,247 |
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#### LE ONIS SECURIT IES, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY FOR THE YEAR ENDED DECEMBER 3 1,2018
| | Total |
|--------------------------------------------------------|---------------------|
| Balance, January 1, 2018 | \$
44,148 |
| Net income | 506,247 |
| Contributions by member
Distribu
tions by member | 75,000
(540,000) |
| Balance, December 31
, 2018 | \$
85,395 |
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### LEONIS SECURITIES, LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31 , 2018
| Cash flows from operating activities: | |
|-----------------------------------------------------------------------------------|---------------|
| Net income | \$
506,247 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |
| Change in accounts receivable | 20,000 |
| Change in prepaid expenses and deposits | (352) |
| Change in accounts payable and accnued expenses | (9,518) |
| Change in due to parent | 2,332 |
| Net cash provided by operating activities: | 518,709 |
| Cash flows from financing activities: | |
| Contributions from member | 75,000 |
| Distributions to member | (540,000) |
| Net cash used by financing activities: | (465,000) |
| Net increase in cash: | 53,709 |
| Cash Balance: | |
| Beginning of period | 38,526 |
| End of period | \$
92,235 |
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# **LEONIS SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS December 31, 2018**
#### **NOTE '1 -NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
Nature of Business: Leonis Securities, LLC is a Delaware limited liability company formed on May 25, 2016 and is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA") since September 19, 2016.
The Company's primary business is investment banking services and it operates under the provisions of paragraph (k)(2)(i) of Rule 15c3-3 of the Securities Exchange Act of 1934. The Company does not hold funds or securities for customers and does not carry customer accounts.
Income Taxes: The Company is wholloy-owned by Leonis Principal LLC ("Parent"). As a limited liability corporation, the tax consequences of the Company's operations all pass through to the member. Accordingly, the Company's financial statements do not include a provision for income taxes.
The Company has adopted the provisions of FASB ASC 740-10, Accounting for Uncertainty in Income Taxes. Under this provision, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position includes an entity's status, including its status as a pass-through entity, and the decision not to file a return. The Company has evaluated each of its tax positions and has determined that no provision or liability for income taxes is necessary.
Estimates: The preparation of financial statements in accordance with generally accepted accounting principles requires the use of estimates in determining assets, liabilities, revenues and expenses. Actual results may differ from these estimates.
Cash: The Company maintains its deposits in high credit quality financial institutions. Balances at times may exceed insured limits.
Date of Management's Review: Subsequent events were evaluated through date the financial statements were issued.
Revenue Recognition: Investment banking revenues are recognized in accordance with terms agreed upon with each client and are generally based on ( 1) a percentage of capital raised or (2) profit allocated and management fees earned by a client on funds received from investors introduced by the Company.
The Financial Accounting Standards Board (FASB), has issued a comprehensive new revenue recognition standard that supersedes most existing revenue recognition guidance under GAAP (FASB Accounting Standards Codification 606). The Company adopted this standard effective January 1, 2018.
The standard's core principle is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 prescribes a five-step process to accomplish this core principle, including:
- Identification of the contract with the customer;
- Identification of the performance obligation(s) under the contract;
- Determination of transaction price;
- Allocation of the transaction price to the identified performance obligation(s); and
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# **LEONIS SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS December 31, 2018**
#### **NOTE '1 -NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**
#### Revenue Recognition (continued):
• Recognition *ot* revenue as (olf when) an entity satisfies the identified performance obligation(s).
The Company recognizes revenue upon completion of a success fee-based transaction as this satisfies the only performance obligation identified in accordance with this standard.
Application of the standard in 2018 using the modified retrospective approach had no effect on reported financial position, results of operations or related disclosures.
#### **NOTE 2 -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, equal to the greater of \$5,000 or 6 2/3% of aggregate indebtedness. At December 31 , 2018, the Company had net capital of \$80,380 which was \$75,380 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was .14 to 1 .
#### **NOTE 3 -RELATED PARTY TRANSACTIONS**
The Company has an expense sharing agreement with its Parent. Under the terms of this agreement, the Company pays the Parent for allocated expenses such as personnel services, occupancy and other administrative costs provided to the Company. Allocated expenses amounted to \$114,332 for the year ended December 31 , 2018. The balance due to the Parent on the accompanying statement of financial condition arose from this expense sharing agreement.
The Company relies on referrals form its Parent for its customers and revenue.
#### **NOTE 4 -CONTINGENCIES**
The Company is subj ect to litigation in the normal course of business. The Company has no litigation in progress at December 31 , 2018.
#### **NOTE 5 -CONCENTRATIONS**
All revenues earned during 2018 were from two customers.
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## LEONIS SECURITIES, LLC SCHEDULE I COMPUTATION OF NET CAPITAL PURSUANT TO RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION ACT OF 1934 AS OF DECEMBER 31 , 2018
Net Capital:
| Total member's equity qualified for net capital | \$
85,395 |
|-----------------------------------------------------------------|--------------|
| Deduction for non-allowable assets: | |
| Prepaid expenses and deposits | 5,015 |
| Total deductions and/or charges | 5,015 |
| Net capital before haircuts | 80,380 |
| Less haircuts | |
| Net capital | 80,380 |
| Minimum net capital required | 5,000 |
| (greater of \$5,000 or 6 2/3% of totall aggregate indebtedness) | |
| Excess net capital | \$
75 380 |
| Aggregate indebtedness | \$
11,855 |
| Percentage of aggregate indebtedness to net capital | 14.75% |
Reconcilitation with Company's computation of net capital included in Part IIA of Form X-17A-5 as of December 31 , 2018
There is no significant difference between net capital reported in Part I lA of Form X-17 A-5 as of December 31 , 2018 and net capital as re·ported above.
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#### LEONIS SECURITIES, LLC
#### SCHEDULE II COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES EXCHANGE ACT AS OF DECEMBER 31 , 2018
The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, pursuant to paragraph (k)(2)(i) of the rule.
#### SCHEDULE Ill
#### INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES EXCHANGE ACT AS OF DECEMBER 31 , 2018
The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, pursuant to paragraph (k)(2)(i) of the rule.
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900 Circle 75 Parkway Suite 1100 Atlanta, Georgia 30339
To Whom It May Concern:
The below information is designed to meet the Exemption Report criteria pursuant to SEA Rule 17a-5(d)(4):
Leoois Securities, LLC is a broker/ dealer registered with the SEC and FINRA. Pursuant to par::.graph k(2)(i) of SEA Rule 15c3-3, the Company is claiming an exemption from SEA Rule 15c3- 3 for the fiscal year ended December 31, 2018.
TI1e Company has met the identified exemption provisions throughout the most recent fiscal year without exception.
The above statement is true and correct to the best of my :and the Company's knowledge.
S~cd, ff~~
Name: Robert Koven
Title: CEO
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# RUBIO CPA, PC
CERTIFIED PUBLIC ACCOUNTANTS 2727 Paces Ferry Road SE Building 2, Suite 1680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 770 838-7123
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Member of Leonis Securities, LLC
We have reviewed management's statements, included in the accompanying Broker Dealers Annual Exemption Report in which (1) Leonis Securities, LLC identified the following provisions of 17 C.F.R. § l5c3-3(k) under which Leonis Securities, LLC claimed an exemption from 17 C.F.R. § 240.l5c3-3: (k)(2)(i) (the "exemption provisions"); and, (2) Leonis Securities, LLC stated that Leonis Securities, LLC met the identified exemption provisions throughout the most recent fiscal year without exception. Leon is Securities, LLC's management is responsible for compliance with the exemption provisions and its statements.
Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Leonis Securities, LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(i), of Rule I Sc3-3 under the Securities Exchange Act of 1934.
February 11, 2019 Atlanta, GA
Rubio CPA, PC
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# RUBIO CPA, PC
#### CERTIFIED PUBLIC ACCOUNTANTS 2727 Paces Ferry Road SE
# INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PR0~~~~1e 6~~~ RELATED TO AN ENTITY'S SIPC ASSESSMENT RECONCILIATION o ffice: 770 690-8995 Fax: 770 838-7123
To the Members of Leon is Securities, LLC
In accordance with Rule 17a-5(e)(4) under the Securities Exchange Act of f934, we have performed the procedures enumerated below with respect to the accompanying General Assessment Reconciliation (Form SJPC-7) to the Securities Investor Protection Corporation (SIPC) for the year ended December 31, 2018, which were agreed to by Leon is Securities. LLC and the Securities and Exchange Commission, Financial Industry Regulatory Authority, Inc. and STPC, solely to assist you and the other specified parties in evaluating Leonis Securities LLC's compliance with the applicable instructions ofthe General Assessment Reconciliation (Form SJPC-7). Leonis Securities LLC's management is responsible for Leon is Securities LLC's compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency ofthese procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows:
- I. Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences;
- 2. Compared the Total Revenue amounts of the audited Form X-17 A-5 for the year ended December 31, 2018, with the amounts reported in Form Sl PC-7 for the year ended December 3 I, 2018, noting nodi fferences;
- 3. Compared adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; and,
- 4. Proved the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences.
We were not engaged to, and did not conduct an examination, the objective of which would be the expression of an opinion on compliance. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
This repott is intended solely for the information and use of the specified parties listed above and is not intended to be and should not be used by anyone other than these specified parties.
February II, 20 19
Atlanta, GA *;U-:. bA;* ~~
Rubio CPA, PC
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| SIPC-7 |
|---------------|
| (35-REV 6/17) |
SECURITIES INVESTOR PROTECTION CORPORATION P.O. Box 92185 Washington, D.C. 20090-2185 202-371-8300 General Assessment Reconciliation
**SIPC-7** (35-REV 6/ 17)
For the fiscal year ended 12/3 111 8
(Read carefully the instructions in your Working Copy before completfng 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. arnd month in which fiscal year ends for purposes of the audit requirement of SEC Rule 17a-5:
| | lo69797
LEONIS SECURITIES, LLC
230 PARK AVE, 10TH FLOOR
NEWYORK, NY 10169 | | Note: If any of the information shown on the
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. |
|----|-----------------------------------------------------------------------------------------------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | L | _j | Rick Alvarez 770-263-7300 |
| | 2. A. General Assessment (item 2e from page 2) | | |
| | B. Less payment made with SIPC-6 filed (exclude interest) | | |
| | Date Paid
C. Less prior overpayment applied | | |
| | D. Assessment balance due or (overpayment) | | 997 |
| E. | Interest computed on late payment (see instruction E) for ______ days at 20% per annum | | 0 |
| F. | Total assessment balance and interest due (or overpayment carried forward) | | |
| | G. PAID WITH THIS FORM:
Check enclosed, payable to SIPC
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 | LEONIS SECURITIES, LLC | | |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|--|--|
| and complete. | | | |
| ~
, 20B_
Dated the_3_ day of | (Tille) | | |
| for a period of not less than 6 years, the latest 2 years in an easily accessible place. | This form and 1he assessment payment is due 60 days after the end of the fiscal year Retain the Working Copy of this form | | |
| 3: | ffi Dates:
Postmarked | Received | Reviewed | |
|------------|-------------------------------|----------|--------------------------|--------------------------|
| LU
L&.l | > Calculations __
_ | | __
Documentation
_ | ___
Forward Copy
_ |
| a:
Q | Exceptions: | | | |
| 0 | Ui Disposition of exceptions: | | | |
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# **DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT**
Amounts for the fiscal period beginning \_1\_111\_1a \_\_\_\_ \_ and ending ..;;'m;;,;,;;,;, '" ;,\_ " \_\_\_ \_
| Item No.
2a. Total revenue (FOCUS Line 12/Part iiA Line 9, Code 4030) | Eliminate cents
\$664,500 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
| 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 divide nd expense deducted in determining item 2a. | |
| (5) Net loss from management of or participation in the underwriting or distribution of secu rities. | |
| (6) Expenses other than advertising, pri nting, registration fees and legal fees deducted in determining net
profit from management of or participation in underwriting or distribution of secu riti es. | |
| (7) Net loss from secu rities in investment accounts. | |
| Total additions | 0 |
| 2c. Deductions:
(1) Revenues from the distributio n of shares of a registered open end investment company or unit
investment trust, from the sale of variable annu ities, from the business of insurance, from investment
advisory services rendered to registered investment compan ies 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 i n 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 fees incu rred 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 secu rities 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.
\$.
_ | |
| __________
(ii) 40% of margin interest eamed on customers secu rities
accounts (40% of FOCUS line 5, Code 3960).
\$
_ | |
| Enter the greater of line (i) or (ii) | |
| Total deductions | 0 |
| 2d. SIPC Net Operating Revenues | \$664,500 |
| 2e. General Assessme nt@ .001 5 | |
| | (to page 1, line 2.A.) |
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.