# LEGIONNAIRE SECURITIES LLC X-17A-5 (2021-02-23) — Broker-dealer annual report - Company: LEGIONNAIRE SECURITIES LLC - Form: X-17A-5 - Filed: 2021-02-23 - Period: 2020-12-31 - Accession: 0001742344-21-000002 - CIK: 1742344 - File #: 8-70130 - Material weakness: No - Auditor: RSM US LLP - Auditor location: Chicago, IL - Contact: Daniel Popiela - Phone: 312-284-5543 - Signed by: Daniel Popiela (Controller) Original filing: https://www.sec.gov/Archives/edgar/data/1742344/000174234421000002/PUBLIC.pdf --- {0}------------------------------------------------ # **Statement of Financial Condition Report December 31, 2020** Filed as PUBLIC information pursuant to Rule 17a-5(d) under the Securities Exchange Act of 1934. {1}------------------------------------------------ #### **UNITED STA TES SECURITIESANDEXCHANGECOMMISSIO** Washington, D.C. 20549 0MB APPROVAL 0MB Number: 3235-01 23 Expires: October 31, 2023 Estimated average burden hours per response ... .. . 12.00 SEC FILE NUMBER s-70130 # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** **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 BEGJNNING Q1/O1/2Q | | | -----------
AND ENDING 12/31/20 | | | |------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|---------|------------------------------------|--|--| | | MM/DDIYY | | MM/DD
Y | | | | | A. REGISTRANT IDENTIFICATION | | | | | | AME OF BROKER-DEALER: Legionnaire Securities, LLC | | | OFFICIAL USE ONLY
FIRM I.D. NO. | | | | AD DRESS OF PRI CJPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | 550 W. Jackson Blvd. Suite 1300 | | | | | | | | o. and treet) | | | | | | Chicago | IL | | 60661 | | | | (City) | {State) | | (Zip Code) | | | | AME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THJS REPORT
Daniel Popjela | | | 312-284-5543 | | | | | | | (Area Code - Telephone
umber) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLJC ACCOUNTANT whose opinion is contained in this Report*
RSM US LLP | | | | | | | | (Name - 1/ mdll'td11al. sta,e lost, first, middle name) | | | | | | 30 South Wacker Dr., Suite 3300 | Chicago | IL | 60606 | | | | (Address) | | (State) | (Zip Code) | | | | CHECKO E:
B
]✓ I certified Public Accountant
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 mu I be upported by a statement of facts and circumstances relied on a the basis for /he exemption. ee Section 240. I 7a-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 0MB control number.** SEC 1410 (11-05) {2}------------------------------------------------ # **OATH OR AFFIRMA TIO** | l, Daniel Popiela | ,. swear (or affirm) lhat, to the best of | | | |----------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|--|--| | Legionnaire SecuriUes, LLC | my knowledge and belief the accompanying financial statement and supporting schedules penaining to the firm of
, as | | | | of December 31st | , are true and correct. I funhcr swear (or affirm that
20 20 | | | | | neither I.be company nor any partner. propri tor. principal officer or director ha any proprietary imere I in any account | | | | classified olely a that of a customer. except as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | OFFICIAL SEAL | Signature | | | | ELIZABETH COTE
NOTARY PUBLIC · STATE OF ILLINOIS | Controller | | | | MY COMMISSION EXPIRES 06/12/24 | Title | | | | | | | | | | | | | | This report ** contains (check all applicable boxes): | | | | | 0
a
Facing Page. | | | | | tatcment of Financial Condition.
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D (c) | | | | | of Comprehensive Income (as defined in | tatcment of Income (Loss) or, if there is other comprehensive income in lhe period(s) presented, a Statement
210.1-02 of Regulation S-
). | | | | §
(d) Statement of Changes in Financial | ondilion. | | | | tatemcnt of Changes in
(e
(I) Statement of Change in Liabilities Subordinated 10 | tockholders Equity or Partners' or Sole Proprietors· Capital.
laims of Creditors. | | | | §
(g) Computation of
et Capital. | | | | | (h) Computation for Determination of Re crve Requirements PUisuant to Rule J5c3-3 | (i} Tnfonnation Relating ro the Possession or Control Requirements Under Rule 1 c3-3 . | | | | D (j) A Reconciliation, including appropriate explanation oflhe Computation of et | apital Under Rule 15c3-l and the | | | | | amputation for Detennination of the R serve Requirements Under Exhibit A of Ru
le l 5c3-3. | | | | D (k) A Reconc
iliation between 1he audited and unaudited
consolidation. | tatements of Financial Condition with respect to methods of | | | | §
()) An Oath or Affirmation. | | | | | (m) A copy of the SIPC
upplemental Repon. | | | | | | (n) A report describing any matenal inadequacies found to ex.isl or found to have existed since the date of the previous audit. | | | | | • •For condition of co11fldenfia/ treatment of certain portion of this filing. see ection 240. J 7a-5(e)(3). | | | {3}------------------------------------------------ # **Contents** | Report of Independent Registered Public Accounting Firm | 1 | |---------------------------------------------------------|-----| | Financial Statement | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-4 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) **RSM US** LLP #### **Report of Independent Registered Public Accounting Firm** To the Managing Member Legionnaire Securities, L. L.C. #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Legionnaire Securities, L.L.C. (the Company) as of December 31, 2020, and the related notes (collectively, the financial statement). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2020, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with 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 statement is 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 of the 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 of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2019. Chicago, Illinois February 16, 2021 **THE POWER OF BEING UNDERSTOOD** AUDIT I TAX I CONSULTING {5}------------------------------------------------ ### **Statement of Financial Condition December 31, 2020** | Assets | | | |----------------------------------------------------------|----|---------| | Cash | | 738,173 | | other assets | | 1,076 | | Receivable from broker-dealer | | 100 | | Total assets | \$ | 739,349 | | Liabilities and Member's Equity | | | | Accounts payable, accrued expenses and other liabilities | | 15,500 | | Payable to affiliates, net | | 20,710 | | Total liabilities | | 36,210 | | Member's equity | | 703,139 | | Total liabilities and member's equity | \$ | 739,349 | See Notes to Financial Statement. {6}------------------------------------------------ ### **Notes to Financial Statement** ## **Note 1. Nature of Operations and Significant Accounting Policies** Legionnaire Securities, L.L.C. (the Company) is a wholly owned subsidiary of Aardvark Membership Holdings, LLC (the Parent). The Company was organized on May 14, 2018. The Company is a brokerdealer registered with the US Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934. The Company will continue to exist unless determined to be dissolved by the Member. A summary of the Company's significant accounting policies is as follows: The Company follows the accounting standards set by the Financial Accounting Standards Board (FASB). The FASB sets generally accepted accounting principles (GAAP) that the Company follows to ensure consistent reporting of financial condition, results of operations, and cash flows. **Use of estimates** The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reporting amounts of revenue and expenses during the reporting period. Actual results could differ from those amounts. **Receivable from broker-dealer** A broker-dealer holds a cash deposit on behalf of the Company which is included in receivable from broker-dealer in the statement of financial condition. **Credit losses on financial assets** The Company evaluates all financial assets that are measured at amortized cost for credit losses under the Current Expected Credit Losses model. Financial assets evaluated include cash and receivable from broker-dealer. Expected credit losses are measured based on historical experience, current conditions and forecasts that affect the collectability of the reported amount Due to the short duration of the financial assets, there are no material estimates of credit losses related to these financial assets as of December 31, 2020. **Income taxes:** The Company is a single member limited liability company and is treated as a disregarded entity for federal and state income tax purposes. The Company does not file any tax returns, but its taxable income is reported as part of its ultimate parent company's tax returns. The ultimate parent company is a limited liability company whose income or loss is includable in the tax returns of its members. The Company has evaluated income tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" of being, sustained "when challenged" or "when examined" by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. Management has determined that there are no material uncertain income tax positions through December 31, 2020. #### **Note 2. Related-Party Transactions** During the period, in the normal course of business, the Company had intercompany transactions with entities affiliated through common ownership which included the affiliates paying employee compensation and related benefits and other expenses on behalf of the Company. These expense are subsequently reimbursed, monthly, on a net basis. As of December 31, 2020, the Company had payables of \$20,710 to these affiliates. {7}------------------------------------------------ ### **Notes to Financial Statement** #### **Note 3. Indemnifications** In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties that provide indemnifications under certain circumstances. The Company's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. Management of the Company expects the risk of loss to be remote. #### **Note 4. Off-Balance Sheet Risk and Concentrations of Credit Risk** The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Management believes that the Company is not exposed to any significant credit risk on cash. #### **Note 5. Net Capital Requirements** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1) which requires the maintenance of minimum "net capital" equal to the greater of \$100,000 or 6 2/3% of "aggregate indebtedness" as defined by Rule 15c3-1, for the first year of operations. At December 31, 2020, the Company had net capital of \$702,063 and net capital requirements of \$100,000 The ratio of aggregate indebtedness to net capital as of December 31 , 2020 was 5%. The net capital requirements may effectively restrict the payment of distributions to the parent. #### **Note 6. Subsequent Events** The Company has evaluated subsequent events for potential recognition and/or disclosure through February 16, 2021 , the date the financial statement was issued. No subsequent events were noted that require disclosure in the financial statement. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.