# MOBILITY SECURITIES, LLC X-17A-5 (2022-03-30) — Broker-dealer annual report - Company: MOBILITY SECURITIES, LLC - Form: X-17A-5 - Filed: 2022-03-30 - Period: 2021-12-31 - Accession: 0001683785-22-000001 - CIK: 1683785 - File #: 8-69833 - Type: Broker-dealer - Material weakness: No - Auditor: Michael Coglianese CPA, P.C. - Auditor location: Bloomingdale, IL - Contact: Carl Norman - Phone: 843-548-0602 - Email: carlnorman@capfg.com - Website: capfg.com - Signed by: Robert Barecca (CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1683785/000168378522000001/MobilityAudit21.pdf --- {0}------------------------------------------------ {1}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-S PART** Ill SEC FILE NUMBER 8-69833 #### **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and lSa-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING | __
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12_/_3_11_2_1 | |---------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------|------------------------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | Mobility Securities, LLC
NAME OF FIRM: | | | | | TYPE OF REGISTRANT (check all applicable boxes):
!Kl Broker-dealer
□ Check here if respondent is also an OTC derivatives dealer | □ Security-based swap dealer | | □ Major security-based swap participant | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | 6203 San Ignacio Ave., Suite 110 | | | | | | (No. and Street) | | | | San Jose | CA | | 95119 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Carl Norman | 84 3-548-0602 | | carlnorman@capfg.com | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Michael Coglianese CPA, P.C. | | | | | | (Name - if individual, state last, first, and middle name) | | | | 125 E. Lake Street, Suite 303 | Bloomingdale | IL | 60108 | | (Address) | (City) | (State) | (Zip Code) | | 10/20/2009 | | 3874 | | | T"
of Reg;st,at;oo w;th PCAOB )(ff appUcable) | | | (PCAOB Reg;suaUoo N,mbec, ;f a ppUcable) | | | FOR OFFICIAL USE ONLY | | | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | Robert Barreca
I, | swear (or affirm) that, to the best of my knowledge and belief, the | | |--------------------------------------------|------------------------------------------------------------------------------------------|-------| | financial report pertaining to the firm of | Mobility Securities, LLC | as of | | December 31 | 2_QIL, is true and correct. I further swear (or affirm) that neither the company nor any | | | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. #### **This filing\*\* contains (check all applicable boxes):** - IXl (a) Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - IXl (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation **S-X).** - !xi (d) Statement of cash flows. - !xi (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - ~ (g) Notes to consolidated financial statements. - !xi (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - ~ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - IXl (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - lxl (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (t) Independent public accountant's report based on an examination of the statement of financial condition. - !xi (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - lxl (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). D(z) Other:-------------------------------------- - - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d}{2), as applicable.* Signature: Title: CCO **sANEl~A** L. **MARIACHER** Notary Publ ,c, State of New **York** Qual ified in Erie County Reg. No . 01 MA5058489 **My** Comm iss ,on Expires **04/08/2022** {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) Bloomingdale I 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, 2021, 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, 2021, 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 Mobility 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 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 for our opinion. #### **Supplemental Information** The supplemental information listed in the accompanying table of contents within the financial statements 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 financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental 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 March 25, 2022 {4}------------------------------------------------ #### *Mobility Securities, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021* #### *ASSETS* | Cash
Other current assets | \$
31,104
1,617 | |------------------------------------------------------------------|-----------------------| | Total assets | \$
32,721 | | LIABILITIES AND MEMBER'S EQUITY
Liabilities, accrued expenses | \$
19,034 | | Member's equity | \$
13,687 | | Total liabilities and member's equity | \$
32,721 | {5}------------------------------------------------ #### *Mobility Securities, LLC STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2021* | REVENUES | | |------------------------|----------------| | Interest income | \$
4 | | | | | EXPENSES | | | Computer Expenses | 298 | | Dues & Subscriptions | 1,799 | | Insurance Expense | 778 | | Office Expense - Other | 1,672 | | Outside Services - IT | 3,750 | | Professional fees | 19,992 | | Regulatory Expense | 1,649 | | Rent Expense | 396 | | Telephone Expense | 2,410 | | Meals & Entertainment | 150 | | Travel Expense | 3,669 | | Total expenses | 36,563 | | Net loss | \$
(36,559) | | | | {6}------------------------------------------------ #### *STATEMENT OF CHANGES IN MEMBER'S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2021 Mobility Securities, LLC* | | | Total
member's
equity | | |----------------------|----|-----------------------------|--| | JANUARY 1, 2021 | \$ | 122,246 | | | Net loss | | (36,559) | | | Member contributions | | 10,000 | | | Member distributions | | (82,000) | | | DECEMBER 31, 2021 | \$ | 13,687 | | {7}------------------------------------------------ #### *Mobility Securities, LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2021* #### **OPERATING ACTIVITIES** | CASH, END OF YEAR | \$
31,104 | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------| | CASH, BEGINNING OF YEAR | 129,025 | | Net decrease in cash | (97,921) | | FINANCING ACTIVITIES
Member contributions
Member distributions
Net cash used for financing activities | 10,000
(82,000)
(72,000) | | Adjustments to reconcile net loss to net cash provided by operations:
Other current assets
Liabilities, accrued expenses
Net cash used for operations | (26)
10,664
(25,921) | | Net loss | \$
(36,559) | {8}------------------------------------------------ ## *Mobility Securities, LLC Schedule I - Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange DECEMBER 31, 2021* ## **Computation of Net Capital** | Total ownership equity from statement of financial condition | \$
13,687 | |----------------------------------------------------------------------------------|--------------| | Deduct ownership equity not allowable for net capital | - | | Total ownership equity qualified for net capital | 13,687 | | Liabilities subordinated to claims of general creditors | - | | Total nonallowable assets (Central Registration Depository and Prepaid Expenses) | (1,617) | | Haircuts on Securities (15C3-1(F) – Short Term Certificate of Deposit) | - | | Net capital | \$
12,070 | #### **Computation of Net Capital Requirement** | (A) Minimum net capital requirement (6 2/3% of total aggregate indebtedness) | \$
- | |-------------------------------------------------------------------------------------------------------------------------------|-------------| | (B) Minimum dollar net capital requirement of reporting broker dealer and minimum net
capital requirements of subsidiaries | 5,000 | | Net capital requirement (greater of A or B above) | 5,000 | | Excess net capital | 7,070 | | Net capital less greater of 10% of total aggregate indebtedness or 120% of minimum net
capital (\$5,000) | \$
6,070 | #### **Computation of Aggregate Indebtedness** | Total aggregate indebtedness (Accounts payable) | \$
19,034 | |-----------------------------------------------------|--------------| | Percentage of aggregate indebtedness to net capital | 1.58 | {9}------------------------------------------------ #### **Mobility Securities, LLC** #### **Notes to Financial Statements** #### **December 31, 2021** ### **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 Regulatory 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 requirements 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. {10}------------------------------------------------ ## *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, 2018. ## **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 \$5,000 and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. As of December 31, 2021 the Company had a net capital of \$12,070 which was \$7,070 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 1.58 as of December 31, 2021. ## **Note 4 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 are events or transactions that provide addition evidence about conditions that existed at the date of 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 5 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. ## **Note 7 Related Party Transactions** The Company shares office space, employees and other overhead expense with its Parent. For the year ended December 31, 2021, the Company incurred expenses of \$36,559 related to this arrangement. At December 31, 2021, \$9,845 was due to the Parent, as stated in the statement of financial condition as part of the liabilities, accrued expenses. {11}------------------------------------------------ Mobility Securities, LLC Exemption Report December 31, 2021 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 &F.R. § 240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: - The Company does not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and - 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 acquisitionsDQGWKH&RPSDQ\ GLGQRW GLUHFWO\RULQGLUHFWO\UHFHLYHKROGRURWKHUZLVHRZHIXQGVRUVHFXULWLHVIRURUWR FXVWRPHUV GLGQRWFDUU\DFFRXQWVRIRUIRUFXVWRPHUVDQG GLGQRWFDUU\3\$% DFFRXQWVDVGHILQHGLQ5XOHF WKURXJKRXWWKHPRVWUHFHQWILVFDO\HDUZLWKRXW H[FHSWLRQ - The Company has met the identified exemption provision throughout the most recent fiscal year without exception. Mobility Securities, LLC I5REHUW%DUUHFD, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. By: Title: &KLHI&RPSOLDQFH2IILFHU {12}------------------------------------------------ ![](_page_12_Picture_0.jpeg) Bloomingdale I 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 ("Exemption Report") pursuant to SEC Rule 17a-5, in which Mobility Securities, LLC did not claim an exemption under paragraph (k) of 17 C.F.R. § 240.15c3-3, and is filing its Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because Mobility Securities, LLC limits its business activities exclusively to mergers and acquisitions, and Mobility Securities, LLC (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to Mobility Securities, LLC); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year December 31, 2021. Mobility 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 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, 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 Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 related to the Non-Covered Firm Provision. Bloomingdale, IL March 25, 2022 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.