# MOBILITY SECURITIES, LLC X-17A-5 (2021-03-02) — Broker-dealer annual report - Company: MOBILITY SECURITIES, LLC - Form: X-17A-5 - Filed: 2021-03-02 - Period: 2020-12-31 - Accession: 0001683785-21-000001 - CIK: 1683785 - File #: 8-69833 - Material weakness: No - Auditor: Michael Coglianese, CPA PC - Auditor location: Bloomingdale, IL - Contact: M. Daniel Smith - Phone: 843-689-6428 - Signed by: M. Daniel Smith (Sole Member) Original filing: https://www.sec.gov/Archives/edgar/data/1683785/000168378521000001/MobilityAudit2020.pdf --- {0}------------------------------------------------ ## MOBILITY SECURITIES, LLC ## FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION For the Year Ended December 31, 2020 With Report of Independent Registered Public Accounting Firm {1}------------------------------------------------ #### UNITED STATES 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 8- SEC FILE NUMBER 69833 | ANNUAL AUDITED REPORT | |-----------------------| | FORM X-17A-5 | | PART III | 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 | 01/01/2020 | AND ENDING | 12/31/2020 | |--------------------------------------------------------------------------|------------------------------|------------|--------------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: | | | OFFICIAL USE ONLY | | Mobility Securities, LLC | | | FIRM I.D. NO. | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | 6203 San Ignacio Ave., Suite 110 | | | | | | (No. and Street) | | | | San Jose | CA | | 95119 | | (City) | (State) | | (Zip Code) | | NAME AND TEEEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | M. Daniel Smith | | | 843-689-6428 | | | | | (Area Code - Telephone Number) | | | B. ACCOUNTANT IDENTIFCATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | Michael Coglianese, CPA PC | | | | | (Name - if individual, state last, first, middle name) | | | | | 125 E. Lake Street | Bloomgingdale | 11 | 60108 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | Certified Public Accountant
X | | | | | 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). > 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. {2}------------------------------------------------ #### OATH OR AFFIRMATION | Mobility Securities, LLC | | | . 86 | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|-------------|----------------------------------------------------------| | of December 31 | .20 20 . 20 . | | , are true and correct. I further swear (or affirm) that | | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | | | | classified solely as that of a customer, except as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Signatur | | | | | | | | | | Sole Member | | | | | Title | | | | | | | | am | MARC | | | | Notary Public | 8 | | | | This report ** contains (check all applicable boxes) | 2026 | | | | (a) Facing page. | | | | | | | | | | (b) Statement of Financial Condition. | | | | | (c) Statement of Income (Loss). | | | | | (d) Statement of Changes in Financial Condition. | | | | | 2 (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's Capital. | | | | | [1) 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 15c3-3. | | | | | □ (i) Information Relating to the Possession or Control Requirements under Rule 15c3-3. | | | | | | | | | | (i) A Reconciliation, including appropriate explanation, of the Computation 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 and unaudited statements of Financial Condition with respect to methods of | | | | | | | | | | (I) An Oath or Affirmation. | | | | | ] (m) A copy of the SIPC Supplemental Report. | | | | | | | | | | (n) A report describing any material inadequacies found to exist or found to have existed since the date of the | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ** For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e){3). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) Bloomingdale | Chicago ### Report of Independent Registered Public Accounting Firm To the Members of Mobility Securities, LLC #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Mobility Securities, LLC as of December 31, 2020, the related statements of operations, changes in members' equity, and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of Mobility Securities, LLC as of December 31, 2020, 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 Securities, LLC's management. Our responsibility is to express an opinion on Mobility Securities, LLC's financial statements 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 Mobility Securities, LLC 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. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, 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 statements. Our audit also included evaluating 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 for our opinion. #### Supplemental Information The supplemental information listed in the accompanying table of contents has been subjected to audit procedures performed in conjunction with the audit of Mobility Securities, LLC's financial statements. The supplemental information is the responsibility of Mobility Securities, LLC's management. Our audit procedures included determining whether the supplemental information reconciles to the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented information. In forming our opinion on the supplemental information, 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 supplemental information listed in the accompanying table of contents is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Mobility Securities, LLC's auditor since 2019. Bloomingdale, IL February 26, 2021 {4}------------------------------------------------ #### Mobility Securities, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 #### ASSETS | Cash
Other current assets | ನ | 129,025
1,591 | |---------------------------------------|----|------------------| | Total assets | S | 130,616 | | LIABILITIES AND MEMBER'S EQUITY | | | | Liabilities, accrued expenses | \$ | 8,370 | | | | | | Member's equity | S | 122,246 | | Total liabilities and member's equity | \$ | 130,616 | {5}------------------------------------------------ #### Mobility Securities, LLC STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2020 | Net loss | S | (115,922) | |-----------------------------------|----|----------------| | Total expenses | | 117,713 | | Travel Expense | | 13,605 | | Rent Expense
Telephone Expense | | 5,164
4,593 | | Regulatory Expense | | 4,192 | | Professional fees | | 83,541 | | Outside Services - IT | | 4,659 | | Office Expense - Other | | 1,268 | | Insurance Expense | | ਦਰ ਹ | | EXPENSES | | | | Total revenues | | 1,791 | | Securities gain/loss | | 1,525 | | REVENUES
Interest income | \$ | 266 | {6}------------------------------------------------ ### Mobility Securities, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2020 | | Total
member's
equity | | |----------------------|-----------------------------|-----------| | JANUARY 1, 2020 | \$ | 1,047,785 | | Net loss | | (115,922) | | Member distributions | | (809,617) | | DECEMBER 31, 2020 | \$ | 122,246 | {7}------------------------------------------------ #### Mobility Securities, LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2020 #### OPERATING ACTIVITIES \$ Net loss (115,922) Adjustments to reconcile net loss to net cash provided by operations: Other current assets 324 Liabilities, accrued expenses (2,581) Net cash povided by operations (118,179) FINANCING ACTIVITIES Member distributions (809,617) Net cash used for financing activities (809,617) Net increase in cash (927,796) CASH, BEGINNING OF YEAR 1,056,821 \$ CASH, END OF YEAR 129,025 {8}------------------------------------------------ ### Mobility Securities, LLC #### Notes to Financial Statements #### December 31, 2020 #### Note 1 Organization and Nature of Business Mobility Securities, LLC (the "Company") is a registered broker-dealer with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Authority ("FINRA"). The Company is a Delaware limited liability company licensed in Michigan, California, New York, and South Carolina. The Company received approval from FINRA for membership on May 31, 2017. The Company has a pending membership agreement change with FINRA and will not claim exemption from the provisions of Rule 15c3-3 of the SEC, in reliance on footnote 74 to SEC Release 34-70073. Mobility Securities LLC is a wholly owned subsidiary of Capstone Financial Group (the "Parent"). ### Note 2 Summary of Significant Accounting Policies and Activities ### Basis of Accounting The Company maintains its books and records on the accrual basis of accounting for financial reporting purposes, which is in accordance with U.S. generally accepted accounting principles and is required by the SEC and FINRA. The financial statements include only the assets and liabilities of the Company and are not combined with the related companies. Regulatory require that the broker-dealer of securities be reported separately. ### Cash and Equivalents For the purposes of the statement of cash flows, the Company considers cash in banks and all highly liquid debt instruments with maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash. #### Revenue Recognition Effective January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The new revenue recognition guidance requires that an entity recognize revenue to depict the transfer of 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. Revenue from contracts with customers includes fees from investment banking. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. Revenue from investment banking success fees are generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction). Revenue from financial advisory retainer fees are generally recognized over time in which the performance obligations are simultaneously provided by the Company and consumed by the customer. {9}------------------------------------------------ ## Use of Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosures. Accordingly, the actual amounts could differ from those estimates. Any adjustments applied to the estimated amounts are recognized in the year in which such adjustments are determined. ## Income Taxes The Company is a limited liability company treated as a disregarded entity. Accordingly, in lieu of Federal and state income taxes, the member is taxed on their proportionate share of the Company's taxable income. Therefore, no provision or liability for Federal or state taxes has been included in these financial statements. The Company's sole member's tax return remains subject to examination by the appropriate taxing jurisdiction for tax years ending after December 31, 2017. ## Note 3 Net Capital Requirement The Company is subject to the securities and Exchange Commission's Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of a minimum net capital of \$100,000 and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. As of December 31, 2020 the Company had a net capital of \$120,655 which was \$20,655 in excess of its required net capital of \$100,000. The Company's ratio of aggregate indebtedness to net capital was 0.07 as of December 31, 2020. ## Note 4 Operating Lease On January 24, 2020, the Company amended its lease to become a virtual premises for \$189/month for the remainder of its term. Rent expense was \$5,164 for the year ended December 31, 2020. The operating lease obligation for the remaining term of the lease is \$1,323. ### Note 5 Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before the financial statements are issued. Recognized subsequent events or transactions that provide addition evidence about conditions that existed at the balance sheet. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. The Company has evaluated subsequent events through the date of the Independent Registered Public Accounting Firm Report, whereupon the financial statements were issued and determined there were no items to disclose. ### Note 6 Commitments and Contingencies The Company is subject to various claims and legal proceedings arising in the normal course of business. Management believes that, as a result of its legal defenses, none of the actions, if determined adversely, should have a material effect on the financial condition of results of operations of the Company, although no assurance can be provided that the Company will not incur a loss. {10}------------------------------------------------ #### Note 7 Related Party Transactions The Company shares office space, employees and other overhead expense with its Parent. For the year ended December 31, 2020, the Company incurred expenses of \$117,713 related to this arrangement. At December 31, 2020, \$70 was due to the Parent, as stated in the statement of financial condition as part of the liabilities, accrued expenses. {11}------------------------------------------------ ## Mobility Securities, LLC # Schedule I - Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission DECEMBER 31, 2020 ## Computation of Net Capital | Total ownership equity from statement of financial condition | ഗ | 122,246 | |----------------------------------------------------------------------------------|---|---------| | Deduct ownership equity not allowable for net capital | | | | Total ownership equity qualified for net capital | | 122,246 | | Liabilities subordinated to claims of general creditors | | | | Total nonallowable assets (Central Registration Depository and Prepaid Expenses) | | (1,591) | | Haircuts on Securities (15C3-1(F) – Short Term Certificate of Deposit) | | | | Net capital | | 120,655 | ## Computation of Net Capital Requirement | (A) Minimum net capital requirement (6 2/3% of total aggregate indebtedness) | S | | |-------------------------------------------------------------------------------------------------------------------------------|---|---------| | (B) Minimum dollar net capital requirement of reporting broker dealer and minimum net capital
requirements of subsidiaries | | 100,000 | | Net capital requirement (greater of A or B above) | | 100,000 | | Excess net capital | | 20,655 | | Net capital less greater of 10% of total aggregate indebtedness or 120% of minimum net capital
(\$5,000) | S | 655 | | | | | ## Computation of Aggregate Indebtedness | Total aggregate indebtedness (Accounts payable) | 8,370 | |-----------------------------------------------------|-------| | Percentage of aggregate indebtedness to net capital | 0.07 | {12}------------------------------------------------ ![](_page_12_Picture_0.jpeg) Bloomingdale | Chicago ### Report of Independent Registered Public Accounting Firm To the Members of Mobility Securities, LLC We have reviewed management's statements, included in the accompanying Exemption Report of Brokers and Dealers, in which (1) Mobility Securities, LLC identified the following provisions of 17 C.F.R. § 15c3- 3(k) under which Mobility Securities, LLC claimed that is did not claim an exemption from Rule 15c3-3 during the fiscal year as they limit its business activities exclusively to merger and acquisitions, and (2) Mobility Securities, LLC stated that Mobility Securities, LLC met the identified exemption sthroughout the most recent fiscal year ended December 31, 2020 without exception. Mobility Securities, LLC's management is responsible for compliance with the exemption 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 Mobility 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, I 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 the Non-Covered Firm Provision. Bloomingdale, IL February 26, 2021 {13}------------------------------------------------ ## Mobility Securities, LLC Exemption Report December 31, 2020 Mobility 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 does not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and - (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 because the Company limits it business activities exclusively to merger and acquisitions. - (3) The Company has met the identified exemption provision throughout the most recent fiscal year without exception. Mobility Securities, LLC I, M. Daniel Smith, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. Bv: Title: Sole Member Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.