# MOBILITY SECURITIES, LLC X-17A-5 (2023-03-30) — Broker-dealer annual report - Company: MOBILITY SECURITIES, LLC - Form: X-17A-5 - Filed: 2023-03-30 - Period: 2017-12-31 - Accession: 0001683785-23-000001 - CIK: 1683785 - File #: 8-69833 - Type: Broker-dealer - Material weakness: No - Auditor: Elliott Davis Decosimo - Auditor location: Greenville, SC - Contact: Daniel Smith - Phone: 843-384-6916 - Signed by: M. Daniel Smith (President) Original filing: https://www.sec.gov/Archives/edgar/data/1683785/000168378523000001/AAS2017.pdf --- {0}------------------------------------------------ **-** OMB APPROVAL OMB Number: 3235-0123 Expires: "VHVTU Estimated average burden ! **-** 285222 #### **--** **FACIG 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_____________________________ AND ENDING______________________________ | 01/01/2017 | | 12-31-2017 | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|---------|--------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | A. | REGISTRAT IDETIFICATIO | | | | | NAME OF BROKER-DEALER: | Auto Aftermarket Securities LLC | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | 6203 San Ignacio Avenue, Suite 110
___________________________________________________________________________________________________________________ | | | | | | | (No. and Street) | | | | | San Jose
_____________________________________________________________________________________________________________________ | CA | | 95119 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
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M. Daniel Smith 843-384-6916 | | | | | | | | | (Area Code – Telephone Number) | | | B. | ACCOUTAT IDETIFICATIO | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | Elliott Davis Decosimo
_____________________________________________________________________________________________________________________ | | | | | | | (Name – if individual, state last, first, middle name) | | | | | 200 East Broad Street
_____________________________________________________________________________________________________________________ | Greenville | SC | 29601 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK OE: | | | | | |
Certified Public Accountant | | | | | | □ B
Public Accountant | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2)* **"'!' #%&"!& \*" % '" %&#"! '" ' "'"! " !"% '"!"!'!!'&"% %!"'%\$(%'"%&#"!** -**(!&&'"% &#+&(%%!'+) "!'%"!( %** {1}------------------------------------------------ # **OATH OR AFFIRMATIO** \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ I, \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ , as of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 20\_\_\_\_\_\_\_\_, 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: Signature Title Notary Public This report \*\* contains (check all applicable boxes): (a) Facing Page. (b) Statement of Financial Condition. (c) Statement of Income (Loss). (d) Statement of Changes in Financial Condition. M. Daniel Smith March 1 18 President □ □ □ § - (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - (f) 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. - (j) 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 consolidation. □ - (l) An Oath or Affirmation. - (m) A copy of the SIPC Supplemental Report. B - (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. □ \*\**For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3).* {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) **ZĞƉŽƌƚŽĨ/ŶĚĞƉĞŶĚĞŶƚZĞŐŝƐƚĞƌĞĚWƵďůŝĐĐĐŽƵŶƚŝŶŐ&ŝƌŵ** dŽƚŚĞDĞŵďĞƌ ƵƚŽĨƚĞƌŵĂƌŬĞƚ^ĞĐƵƌŝƚŝĞƐ͕>> ^ĂŶ:ŽƐĞ͕ĂůŝĨŽƌŶŝĂ ### **KƉŝŶŝŽŶŽŶƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ** tĞŚĂǀĞĂƵĚŝƚĞĚƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůĐŽŶĚŝƚŝŽŶŽĨƵƚŽĨƚĞƌŵĂƌŬĞƚ^ĞĐƵƌŝƚŝĞƐ͕>>;ƚŚĞ ŽŵƉĂŶLJͿĂƐŽĨĞĐĞŵďĞƌϯϭ͕ϮϬϭϳ͕ĂŶĚƚŚĞƌĞůĂƚĞĚƐƚĂƚĞŵĞŶƚƐŽĨŽƉĞƌĂƚŝŽŶƐ͕ĐŚĂŶŐĞƐŝŶŵĞŵďĞƌ͛ƐĞƋƵŝƚLJ ĂŶĚĐĂƐŚ ĨůŽǁƐ ĨŽƌ ƚŚĞLJĞĂƌ ƚŚĞŶĞŶĚĞĚ͕ĂŶĚ ƚŚĞ ƌĞůĂƚĞĚŶŽƚĞƐ ƚŽƚŚĞ ĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ ;ĐŽůůĞĐƚŝǀĞůLJ͕ ƚŚĞ ĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐͿ͘/ŶŽƵƌŽƉŝŶŝŽŶ͕ƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƌĞĨĞƌƌĞĚƚŽĂďŽǀĞƉƌĞƐĞŶƚĨĂŝƌůLJ͕ŝŶĂůůŵĂƚĞƌŝĂů ƌĞƐƉĞĐƚƐ͕ƚŚĞĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶŽĨƚŚĞŽŵƉĂŶLJĂƐŽĨĞĐĞŵďĞƌϯϭ͕ϮϬϭϳ͕ĂŶĚƚŚĞƌĞƐƵůƚƐŽĨŝƚƐŽƉĞƌĂƚŝŽŶƐĂŶĚ ŝƚƐĐĂƐŚĨůŽǁƐĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚŝŶĐŽŶĨŽƌŵŝƚLJǁŝƚŚĂĐĐŽƵŶƚŝŶŐƉƌŝŶĐŝƉůĞƐŐĞŶĞƌĂůůLJĂĐĐĞƉƚĞĚŝŶƚŚĞhŶŝƚĞĚ ^ƚĂƚĞƐŽĨŵĞƌŝĐĂ͘ #### **ĂƐŝƐĨŽƌKƉŝŶŝŽŶ** dŚĞƐĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂƌĞ ƚŚĞ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ŽĨ ƚŚĞ ŽŵƉĂŶLJΖƐ ŵĂŶĂŐĞŵĞŶƚ͘ KƵƌ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ŝƐ ƚŽ ĞdžƉƌĞƐƐĂŶŽƉŝŶŝŽŶŽŶƚŚĞŽŵƉĂŶLJΖƐĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐďĂƐĞĚŽŶŽƵƌĂƵĚŝƚ͘tĞĂƌĞĂƉƵďůŝĐĂĐĐŽƵŶƚŝŶŐĨŝƌŵ ƌĞŐŝƐƚĞƌĞĚǁŝƚŚƚŚĞWƵďůŝĐŽŵƉĂŶLJĐĐŽƵŶƚŝŶŐKǀĞƌƐŝŐŚƚŽĂƌĚ;hŶŝƚĞĚ^ƚĂƚĞƐͿ;WKͿĂŶĚĂƌĞƌĞƋƵŝƌĞĚƚŽ ďĞŝŶĚĞƉĞŶĚĞŶƚǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞŽŵƉĂŶLJŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚh͘^͘ĨĞĚĞƌĂůƐĞĐƵƌŝƚŝĞƐůĂǁƐĂŶĚƚŚĞĂƉƉůŝĐĂďůĞ ƌƵůĞƐĂŶĚƌĞŐƵůĂƚŝŽŶƐŽĨƚŚĞ^ĞĐƵƌŝƚŝĞƐĂŶĚdžĐŚĂŶŐĞŽŵŵŝƐƐŝŽŶĂŶĚƚŚĞWK͘ tĞĐŽŶĚƵĐƚĞĚŽƵƌĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƐƚĂŶĚĂƌĚƐŽĨƚŚĞWK͘dŚŽƐĞƐƚĂŶĚĂƌĚƐƌĞƋƵŝƌĞƚŚĂƚǁĞƉůĂŶ ĂŶĚ ƉĞƌĨŽƌŵ ƚŚĞ ĂƵĚŝƚ ƚŽ ŽďƚĂŝŶ ƌĞĂƐŽŶĂďůĞ ĂƐƐƵƌĂŶĐĞ ĂďŽƵƚ ǁŚĞƚŚĞƌ ƚŚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂƌĞ ĨƌĞĞ ŽĨ ŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞ ƚŽĞƌƌŽƌŽƌ ĨƌĂƵĚ͘dŚĞŽŵƉĂŶLJŝƐŶŽƚ ƌĞƋƵŝƌĞĚ ƚŽŚĂǀĞ͕ŶŽƌǁĞƌĞǁĞ ĞŶŐĂŐĞĚƚŽƉĞƌĨŽƌŵ͕ĂŶĂƵĚŝƚŽĨŝƚƐŝŶƚĞƌŶĂůĐŽŶƚƌŽůŽǀĞƌĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶŐ͘ƐƉĂƌƚŽĨŽƵƌĂƵĚŝƚǁĞĂƌĞƌĞƋƵŝƌĞĚ ƚŽŽďƚĂŝŶĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůŽǀĞƌĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶŐďƵƚŶŽƚĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĞdžƉƌĞƐƐŝŶŐ ĂŶŽƉŝŶŝŽŶŽŶ ƚŚĞĞĨĨĞĐƚŝǀĞŶĞƐƐŽĨ ƚŚĞŽŵƉĂŶLJ͛ƐŝŶƚĞƌŶĂůĐŽŶƚƌŽůŽǀĞƌ ĨŝŶĂŶĐŝĂů ƌĞƉŽƌƚŝŶŐ͘ĐĐŽƌĚŝŶŐůLJ͕ǁĞ ĞdžƉƌĞƐƐŶŽƐƵĐŚŽƉŝŶŝŽŶ͘ KƵƌ ĂƵĚŝƚ ŝŶĐůƵĚĞĚ ƉĞƌĨŽƌŵŝŶŐ ƉƌŽĐĞĚƵƌĞƐ ƚŽ ĂƐƐĞƐƐ ƚŚĞ ƌŝƐŬƐ ŽĨ ŵĂƚĞƌŝĂů ŵŝƐƐƚĂƚĞŵĞŶƚ ŽĨ ƚŚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͕ ǁŚĞƚŚĞƌ ĚƵĞ ƚŽ ĞƌƌŽƌ Žƌ ĨƌĂƵĚ͕ ĂŶĚ ƉĞƌĨŽƌŵŝŶŐ ƉƌŽĐĞĚƵƌĞƐ ƚŚĂƚ ƌĞƐƉŽŶĚ ƚŽ ƚŚŽƐĞ ƌŝƐŬƐ͘ ^ƵĐŚ ƉƌŽĐĞĚƵƌĞƐŝŶĐůƵĚĞĚĞdžĂŵŝŶŝŶŐ͕ŽŶĂƚĞƐƚďĂƐŝƐ͕ĞǀŝĚĞŶĐĞƌĞŐĂƌĚŝŶŐƚŚĞĂŵŽƵŶƚƐĂŶĚĚŝƐĐůŽƐƵƌĞƐŝŶƚŚĞĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͘KƵƌĂƵĚŝƚĂůƐŽŝŶĐůƵĚĞĚĞǀĂůƵĂƚŝŶŐƚŚĞĂĐĐŽƵŶƚŝŶŐƉƌŝŶĐŝƉůĞƐƵƐĞĚĂŶĚƐŝŐŶŝĨŝĐĂŶƚĞƐƚŝŵĂƚĞƐŵĂĚĞ ďLJŵĂŶĂŐĞŵĞŶƚ͕ĂƐǁĞůůĂƐĞǀĂůƵĂƚŝŶŐƚŚĞŽǀĞƌĂůůƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘tĞďĞůŝĞǀĞƚŚĂƚŽƵƌ ĂƵĚŝƚƉƌŽǀŝĚĞƐĂƌĞĂƐŽŶĂďůĞďĂƐŝƐĨŽƌŽƵƌŽƉŝŶŝŽŶ͘ {3}------------------------------------------------ #### **^ƵƉƉůĞŵĞŶƚĂů/ŶĨŽƌŵĂƚŝŽŶ** dŚĞƐƵƉƉůĞŵĞŶƚĂƌLJŝŶĨŽƌŵĂƚŝŽŶĐŽŶƚĂŝŶĞĚŝŶƚŚĞ^ƵƉƉůĞŵĞŶƚĂů^ĐŚĞĚƵůĞϭͲŽŵƉƵƚĂƚŝŽŶŽĨEĞƚĂƉŝƚĂůhŶĚĞƌ ZƵůĞϭϱĐϯͲϭŽĨƚŚĞ^ĞĐƵƌŝƚŝĞƐĂŶĚdžĐŚĂŶŐĞŽŵŵŝƐƐŝŽŶ;ƚŚĞ^ƵƉƉůĞŵĞŶƚĂů/ŶĨŽƌŵĂƚŝŽŶͿŚĂƐďĞĞŶƐƵďũĞĐƚĞĚƚŽ ĂƵĚŝƚ ƉƌŽĐĞĚƵƌĞƐ ƉĞƌĨŽƌŵĞĚ ŝŶ ĐŽŶũƵŶĐƚŝŽŶ ǁŝƚŚ ƚŚĞ ĂƵĚŝƚ ŽĨ ƚŚĞ ŽŵƉĂŶLJ͛Ɛ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͘ dŚĞ ^ƵƉƉůĞŵĞŶƚĂů/ŶĨŽƌŵĂƚŝŽŶŝƐƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚLJŽĨƚŚĞŽŵƉĂŶLJ͛ƐŵĂŶĂŐĞŵĞŶƚ͘KƵƌĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐŝŶĐůƵĚĞĚ ĚĞƚĞƌŵŝŶŝŶŐǁŚĞƚŚĞƌƚŚĞ^ƵƉƉůĞŵĞŶƚĂů/ŶĨŽƌŵĂƚŝŽŶƌĞĐŽŶĐŝůĞƐƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽƌƚŚĞƵŶĚĞƌůLJŝŶŐ ĂĐĐŽƵŶƚŝŶŐĂŶĚŽƚŚĞƌƌĞĐŽƌĚƐ͕ĂƐĂƉƉůŝĐĂďůĞ͕ĂŶĚƉĞƌĨŽƌŵŝŶŐƉƌŽĐĞĚƵƌĞƐƚŽƚĞƐƚƚŚĞĐŽŵƉůĞƚĞŶĞƐƐĂŶĚĂĐĐƵƌĂĐLJ ŽĨƚŚĞŝŶĨŽƌŵĂƚŝŽŶƉƌĞƐĞŶƚĞĚŝŶƚŚĞ^ƵƉƉůĞŵĞŶƚĂů/ŶĨŽƌŵĂƚŝŽŶ͘/ŶĨŽƌŵŝŶŐŽƵƌŽƉŝŶŝŽŶŽŶƚŚĞ^ƵƉƉůĞŵĞŶƚĂů /ŶĨŽƌŵĂƚŝŽŶ͕ǁĞĞǀĂůƵĂƚĞĚǁŚĞƚŚĞƌƚŚĞ^ƵƉƉůĞŵĞŶƚĂů/ŶĨŽƌŵĂƚŝŽŶ͕ŝŶĐůƵĚŝŶŐŝƚƐĨŽƌŵĂŶĚĐŽŶƚĞŶƚ͕ŝƐƉƌĞƐĞŶƚĞĚ ŝŶ ĐŽŶĨŽƌŵŝƚLJ ǁŝƚŚ ϭϳ ͘&͘Z͘ Α ϮϰϬ͘ϭϳĂͲϱ͘ /Ŷ ŽƵƌ ŽƉŝŶŝŽŶ͕ ƚŚĞ ƐƵƉƉůĞŵĞŶƚĂƌLJ ŝŶĨŽƌŵĂƚŝŽŶ ĐŽŶƚĂŝŶĞĚ ŝŶ ƚŚĞ ^ƵƉƉůĞŵĞŶƚĂů ^ĐŚĞĚƵůĞ ϭ Ͳ ŽŵƉƵƚĂƚŝŽŶ ŽĨ EĞƚ ĂƉŝƚĂů hŶĚĞƌ ZƵůĞ ϭϱĐϯͲϭ ŽĨ ƚŚĞ ^ĞĐƵƌŝƚŝĞƐ ĂŶĚ džĐŚĂŶŐĞ ŽŵŵŝƐƐŝŽŶŝƐĨĂŝƌůLJƐƚĂƚĞĚ͕ŝŶĂůůŵĂƚĞƌŝĂůƌĞƐƉĞĐƚƐ͕ŝŶƌĞůĂƚŝŽŶƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƐĂǁŚŽůĞ͘ tĞŚĂǀĞƐĞƌǀĞĚĂƐƚŚĞŽŵƉĂŶLJΖƐĂƵĚŝƚŽƌƐŝŶĐĞϮϬϭϳ͘ 'ƌĞĞŶǀŝůůĞ͕^ŽƵƚŚĂƌŽůŝŶĂ DĂƌĐŚϭ͕ϮϬϭϴ {4}------------------------------------------------ # Auto Aftermarket Securities, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2017 #### ASSETS | Cash | S | 50,407 | |---------------------------------------|----|--------| | Total assets | | 50,407 | | LIABILITIES AND MEMBER'S EQUITY | | | | Liabilities, accrued expenses | \$ | | | | | | | Member's equity | | 50,407 | | Total liabilities and member's equity | \$ | 50,407 | {5}------------------------------------------------ ## Auto Aftermarket Securities, LLC STATEMENT OF OPERATIONS DECEMBER 31, 2017 | REVENUES | | | |--------------------------------|---|----------| | Interest income | S | 17 | | Total revenues | | 17 | | EXPENSES | | | | Business Licenses and Permits | | 4,000 | | Computer and Internet Expenses | | 350 | | Office Expense - Other | | 543 | | Outside Services - IT | | 1,953 | | Professional fees | | 36,456 | | Rent Expense | | 9,657 | | Telephone Expense | | 3,714 | | Travel Expense | | 26,300 | | Total expenses | | 82,973 | | Net loss | S | (82,956) | {6}------------------------------------------------ # Auto Aftermarket Securities, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY DECEMBER 31, 2017 | | Total
member's
equity | | |----------------------|-----------------------------|----------| | JANUARY 1, 2017 | \$ | 49,391 | | Net loss | | (82,956) | | Member contributions | | 83,972 | | DECEMBER 31, 2017 | ಲಿ | 50,407 | {7}------------------------------------------------ ## Auto Aftermarket Securities, LLC STATEMENT OF CASH FLOWS DECEMBER 31, 2017 | OPERATING ACTIVITIES
Net loss | S | (82,956) | |----------------------------------|---|----------| | FINANCING ACTIVITIES | | | | Member contributions | | 83,972 | | Net increase in cash | | 1,016 | | CASH, BEGINNING OF YEAR | | 49,391 | | CASH, END OF YEAR | | 50,407 | {8}------------------------------------------------ # **Auto Aftermarket Securities, LLC** **otes to Financial Statements** **December 31, 2017** # **ote 1 Summary of Significant Accounting Policies and Activities** These financial statements were prepared in conformity of accounting principles generally accepted in the United states of America. The more significant of these principles used are described as follows: # *Business Activity and Regulation* Auto Aftermarket Securities, LLC (the Company) is a broker-dealer, registered 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's revenue is generated principally by fees for facilitating mergers and acquisitions and the related consulting fees for business valuations. The Company uses the accrual method of accounting. # *Cash* For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash. # *Limited Liability Company* Auto Aftermarket Securities LLC is a wholly owned subsidiary of Capstone Financial Group. # *Fair value of assets and liabilities* The carrying amounts of all financial instruments approximate their estimated fair values in the accompanying financial statements. # *Recently Issued Accounting Pronouncements* Accounting standards that have been issued or proposed by the FASB or other standards setting bodies are not expected to have a material impact on the Company's financial position, revenue recognition, results of operations or cash flows. # **ote 2 et Capital Requirement** The Company is subject to the securities and Exchange Commission 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, 2017 the Company had a net capital of \$50,407 which was \$45,407 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 0 as of December 31, 2017. {9}------------------------------------------------ #### **ote 3 Income Tax Status** The Company is classified as a Limited Liability Company for federal income tax purposes. Accordingly, no provision for income taxes is made in the financial statements of the Company. Taxable income or loss is reported in the income tax returns of its member. Management has determined that the Company has no uncertain tax positions that would require the Company to record a liability for unrecognized tax benefits. The Company has only been a registered broker-dealer since May of 2017, so no income tax returns have yet been filed. # **ote 4 Operating Lease** The Company entered into a lease commitment for its office space commencing May 1, 2017 and expiring on May 1, 2018 and have agreed to a renewal of the lease agreement for the period May 1, 2018 – October 31, 2018. The operating lease obligation for the remaining term of the lease is \$15,420 ## **ote 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 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. There were no subsequent events to report. ## **ote 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}------------------------------------------------ # Auto Aftermarket Securities, LLC Schedule I - Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission DECEMBER 31, 2017 | Computation of Net Capital | | | |-------------------------------------------------------------------------------------------------------------------------------|----|--------| | Total ownership equity from statement of financial condition | \$ | 50,407 | | Deduct ownership equity not allowable for net capital | | | | Total ownership equity qualified for net capital | | 50,407 | | Liabilities subordinated to claims of general creditors | | | | Total nonallowable assets (Central Registration Depository and Prepaid Expenses) | | | | Haircuts on Securities (15C3-1(F) - Short Term Certificate of Deposit) | | | | Net capital | S | 50,40 | | | | | | 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 | | 45,407 | | Net capital less greater of 10% of total aggregate indebtedness or 120% of minimum net capital
(\$5,000) | \$ | 50,407 | | | | | | Computation of Aggregate Indebtedness | | | | Total aggregate indebtedness (Accounts payable) | \$ | | | Percentage of aggregate indebtedness to net capital | | | | |-----------------------------------------------------|--|--|--| {11}------------------------------------------------ ![](_page_11_Picture_0.jpeg) ## **ZĞƉŽƌƚŽĨ/ŶĚĞƉĞŶĚĞŶƚZĞŐŝƐƚĞƌĞĚWƵďůŝĐĐĐŽƵŶƚŝŶŐ&ŝƌŵʹdžĞŵƉƚŝŽŶZĞƉŽƌƚ** dŽƚŚĞDĞŵďĞƌ ƵƚŽĨƚĞƌŵĂƌŬĞƚ^ĞĐƵƌŝƚŝĞƐ͕>> ^ĂŶ:ŽƐĞ͕ĂůŝĨŽƌŶŝĂ tĞŚĂǀĞƌĞǀŝĞǁĞĚŵĂŶĂŐĞŵĞŶƚΖƐƐƚĂƚĞŵĞŶƚƐ͕ŝŶĐůƵĚĞĚŝŶƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐdžĞŵƉƚŝŽŶZĞƉŽƌƚ͕ŝŶǁŚŝĐŚ;ĂͿ ƵƚŽĨƚĞƌŵĂƌŬĞƚ^ĞĐƵƌŝƚŝĞƐ͕>>;ƚŚĞŽŵƉĂŶLJͿŝĚĞŶƚŝĨŝĞĚƚŚĞĨŽůůŽǁŝŶŐƉƌŽǀŝƐŝŽŶƐŽĨϭϳ͘&͘Z͘ΑϮϰϬ͘ϭϱĐϯͲϯ;ŬͿ ƵŶĚĞƌǁŚŝĐŚƚŚĞŽŵƉĂŶLJĐůĂŝŵĞĚĂŶĞdžĞŵƉƚŝŽŶĨƌŽŵϭϳ͘&͘Z͘ΑϮϰϬ͘ϭϱĐϯͲϯďĂƐĞĚŽŶƐĞĐƚŝŽŶ;ŬͿ;ϮͿ;ŝͿ;ƚŚĞ ΗĞdžĞŵƉƚŝŽŶƉƌŽǀŝƐŝŽŶƐΗͿĂŶĚ;ďͿƵƚŽĨƚĞƌŵĂƌŬĞƚ^ĞĐƵƌŝƚŝĞƐ͕>>ƐƚĂƚĞĚƚŚĂƚƚŚĞŽŵƉĂŶLJŵĞƚƚŚĞŝĚĞŶƚŝĨŝĞĚ ĞdžĞŵƉƚŝŽŶƉƌŽǀŝƐŝŽŶƐƚŚƌŽƵŐŚŽƵƚƚŚĞŵŽƐƚƌĞĐĞŶƚĨŝƐĐĂůLJĞĂƌǁŝƚŚŽƵƚĞdžĐĞƉƚŝŽŶ͘ƵƚŽĨƚĞƌŵĂƌŬĞƚ^ĞĐƵƌŝƚŝĞƐ͕ >>ΖƐŵĂŶĂŐĞŵĞŶƚŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞĞdžĞŵƉƚŝŽŶƉƌŽǀŝƐŝŽŶƐĂŶĚŝƚƐƐƚĂƚĞŵĞŶƚƐ͘ KƵƌ ƌĞǀŝĞǁ ǁĂƐ ĐŽŶĚƵĐƚĞĚ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƚŚĞ ƐƚĂŶĚĂƌĚƐ ŽĨ ƚŚĞ WƵďůŝĐ ŽŵƉĂŶLJ ĐĐŽƵŶƚŝŶŐKǀĞƌƐŝŐŚƚ ŽĂƌĚ;hŶŝƚĞĚ^ƚĂƚĞƐͿĂŶĚ͕ĂĐĐŽƌĚŝŶŐůLJ͕ŝŶĐůƵĚĞĚŝŶƋƵŝƌŝĞƐĂŶĚŽƚŚĞƌƌĞƋƵŝƌĞĚƉƌŽĐĞĚƵƌĞƐƚŽŽďƚĂŝŶĞǀŝĚĞŶĐĞ ĂďŽƵƚƚŚĞŽŵƉĂŶLJ͛ƐĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞĞdžĞŵƉƚŝŽŶƉƌŽǀŝƐŝŽŶƐ͘ƌĞǀŝĞǁŝƐƐƵďƐƚĂŶƚŝĂůůLJůĞƐƐŝŶƐĐŽƉĞƚŚĂŶ ĂŶ ĞdžĂŵŝŶĂƚŝŽŶ͕ ƚŚĞ ŽďũĞĐƚŝǀĞ ŽĨ ǁŚŝĐŚ ŝƐ ƚŚĞ ĞdžƉƌĞƐƐŝŽŶ ŽĨ ĂŶ ŽƉŝŶŝŽŶ ŽŶ ŵĂŶĂŐĞŵĞŶƚΖƐ ƐƚĂƚĞŵĞŶƚƐ͘ ĐĐŽƌĚŝŶŐůLJ͕ǁĞĚŽŶŽƚĞdžƉƌĞƐƐƐƵĐŚĂŶŽƉŝŶŝŽŶ͘ ĂƐĞĚŽŶŽƵƌƌĞǀŝĞǁ͕ǁĞĂƌĞŶŽƚĂǁĂƌĞŽĨĂŶLJŵĂƚĞƌŝĂůŵŽĚŝĨŝĐĂƚŝŽŶƐƚŚĂƚƐŚŽƵůĚďĞŵĂĚĞƚŽŵĂŶĂŐĞŵĞŶƚΖƐ ƐƚĂƚĞŵĞŶƚƐƌĞĨĞƌƌĞĚƚŽĂďŽǀĞĨŽƌƚŚĞŵƚŽďĞĨĂŝƌůLJƐƚĂƚĞĚ͕ŝŶĂůůŵĂƚĞƌŝĂůƌĞƐƉĞĐƚƐ͕ďĂƐĞĚŽŶƚŚĞƉƌŽǀŝƐŝŽŶƐƐĞƚ ĨŽƌƚŚŝŶƉĂƌĂŐƌĂƉŚ;ŬͿ;ϮͿ;ŝͿŽĨϭϳ͘&͘Z͘ΑϮϰϬ͘ϭϱĐϯͲϯ͘ *£~, LLC.* 'ƌĞĞŶǀŝůůĞ͕^ŽƵƚŚĂƌŽůŝŶĂ DĂƌĐŚϭ͕ϮϬϭϴ {12}------------------------------------------------ # Auto Aftermarket Securities, LLC Exemption Report Auto Aftermarket 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 may file an Exemption Report because the Company had no obligations under 17 C.F.R. § 240.15c3-3 (2) The Company had no obligations under 17 C.F.R. § 240.15c3-3 throughout the most recent fiscal year without exception. Auto Aftermarket Securities, LLC I, M. Daniel Smith , swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. **By:** Title: President **March 1, 2018** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.