# IM GLOBAL US DISTRIBUTORS LLC X-17A-5 (2021-02-25) — Broker-dealer annual report
- Company: IM GLOBAL US DISTRIBUTORS LLC
- Form: X-17A-5
- Filed: 2021-02-25
- Period: 2020-12-31
- Accession: 0001761259-21-000002
- CIK: 1761259
- File #: 8-70266
- Material weakness: No
- Auditor: Citrin Cooperman & Company LLP
- Auditor location: Livingston, NJ
- Contact: Jeffrey Seeley
- Phone: 310-367-0543
- Signed by: Jeffrey Seeley (Deputy CEO -Chief Operating Officer)
Original filing: https://www.sec.gov/Archives/edgar/data/1761259/000176125921000002/imglobalusdistributorspub.pdf
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
### 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 10/09/2019 AND ENDING 12/31/2020 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF BROKER - DEALER: OFFICIAL USE ONLY iM Global US Distributors LLC FIRM ID. NO ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) 1600 E. Franklin Avenue, Suite D (No, and Street) El Segundo California 90245 (City) (State) (Zip Code) NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT Jeffrey Seeley (310) 367-0543 (Area Code - Telephone No.) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report\* Citrin Cooperman & Company LLC (Name - if individual, state last, first, middle name) 290 West Mount Pleasant Avenue, Suite 3310 Livingston NJ 07039 (Address) (City) (Zip Code) (State) CHECK ONE: X 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 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).
SEC 1410 (06-02)
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SEC FILE NUMBER
8- 70266
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#### OATH OR AFFIRMATION
| I, Jeffrey Seeley
such as a more and swear (or affirm) that, to the | | | | |
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| best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | | | |
| iM Global US Distributors, LLC
as of | | | | |
| December 31 | | | | |
| nor any partner, proprietor, principal officer or director has any account classified solely as that of | | | | |
| a customer, except as follows: | | | | |
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| Signature | | | | |
| Deputy CEO-Chief Operating Officer | | | | |
| Title | | | | |
| | | | | |
| Notary Public | | | | |
| BRYAN CORRADO
Notary Public - California | | | | |
| Los Angeles County
Commission # 2229090 | | | | |
| Comm. Expiras Feb 11, 2022 | | | | |
| | | | | |
| This report** contains (check all applicable boxes): | | | | |
| X (a) Facing page. | | | | |
| > (b) Statement of Financial Condition. | | | | |
| (c) Statement of Income (Loss). | | | | |
| (d) Statement of Cash Flows. | | | | |
| J (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's 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. | | | | |
| J (i) Information Relating to the Possession or control Requirements Under Rule 15c3-3. | | | | |
| () A Reconciliation, including appropriate explanation, of the 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. | | | | |
| An Oath or Affirmation.
XI (1) | | | | |
| _(m) A copy of the SIPC Supplemental Report.
_(n) A report describing any material inadequacies found to have existed since the date of the previous audit. | | | | |
| Exemption Report.
(0) | | | | |
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\*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e).
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## iM Global Partner
# iM Global US Distributors, LLC
Financial Statement
December 31, 2020
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## Table of Contents
| I. | Report of Independent Registered Public Accounting Firm | 3 |
|------|---------------------------------------------------------|---|
| II. | Statement of financial condition | 4 |
| III. | Notes to Statement of Financial Condition | 5 |
| A. | Nat ure of operat ions and basis present at ion | 5 |
| B. | Summary of significant account ing policies | 5 |
| C. | Relat ed-part y t ransact ions | 7 |
| D. | Equit y | 7 |
| E. | Income t ax | 7 |
| F. | Concent rat ion of credit risk | 8 |
| G. | Net capit al requirement s | 8 |
| H. | Subsequent event s | 8 |
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## I. Report of Independent Registered Public Accounting Firm
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Member of iM Global US Distributors, LLC
#### Opinion on the Financial Statement
We have andited the accompanying statement of financial condition of iM Global US Distributors, LLC as of December 31, 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of iM Global US Distributors, LLC 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 iM Global US Distributors, LLC's management. Our responsibility is to express an opinion on iM Global US Distributors, LLC'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 iM Global US Distributors, 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 andit 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 of fraud. 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 andit 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.
Citin Cooperance Caugary, LLP
We have served as iM Global US Distributors, LLC's auditor since 2019. Livingston, New Jersey February 22, 2021
CITRIN COOPERMAN & COMPANY, LLP 290 W. MT. PLEASANT AVENUE LIVINGSTON, NJ 07039 | TEL 973.218.7160 | CITRINCOOPERMAN, COM AN INDEPENDENT FIRM ASSOCIATED WITH MOORE STEPHENS
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# II. Statement of financial condition
#### **Year Ended December 31, 2020 (Expressed in United States dollars)**
| ASSETS | \$ |
|---------------------------------------|---------|
| Cash | 170,376 |
| Due from related parties | 83,566 |
| Prepaid expenses and other assets | 35,269 |
| Total assets | 289,211 |
| LIABILITIES AND MEMBER'S EQUITY | |
| Liabilities | |
| Accounts payable and accrued expenses | 40,040 |
| Due to related parties | 30,344 |
| Total liabilities | 70,384 |
| Member's equity | 218,827 |
| Total liabilities and member's equity | 289,211 |
See not es t o st atement of financial condit ion
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# III. Notes to Statement of Financial Condition
## A. Nat ure of operat ions and basis present at ion
#### **Nature of Operations**
iM Global US Distributors, LLC (the " Company" ) is a Delaware limited liability company formed on December 5, 2018 that is a registered broker dealer with the Securities and Exchange Commission (" SEC" ) and the Financial Industry Regulatory Authority (" FINRA" ). The Company was approved by FINRA to operate as a registered broker dealer on October 9, 2019. The Company's operations consist primarily of providing marketing and distribution services to financial intermediaries and institutions.
The Company is a wholly-owned subsidiary of iM Global Partner SAS (the "Parent"). Since the Company is a limited liability company, the member is not liable for the debts, obligations, or liabilities of the Company, whether arising in contract, tort or otherwise, unless the member has signed a specific guarantee. Pursuant to the Company's limited liability agreement, the Company will continue indefinitely, or at such earlier time as determined by the member.
#### **Basis of Presentation**
The accompanying financial st at ement has been prepared in accordance with account ing principles generally accept ed in t he United St at es of America (" U.S. GAAP" ).
This financial st atement was approved by management and available for issuance on February 22, 2021. Subsequent events have been evaluat ed through this date.
#### **Financial support**
The Company has an agreement wit h t he Parent , whereby t he Parent , has committ ed t o provide financial support t o the Company in an amount sufficient t o sat isfy its obligations when due and fund it s operat ions as needed, unt il at least February 26, 2022.
## B. Summary of significant account ing policies
#### **Use of Estimates**
The preparation of the financial statement in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
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#### **Revenue Recognition**
The revenue recognition guidance requires that an entity should 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 (i.e., the transaction price). When determining the transaction price under the new revenue guidance, an entity may recognize variable consideration only to the extent that it is probable to not be significantly reversed. The new revenue guidance also requires improved disclosures to help users of the financial statement better understand the nature, amount, timing, and uncertainty of revenue that is recognized.
The Company provides advisory and marketing services and receives revenue for these under an advisory and marketing contracts. These revenue streams are recognized when control of these products or services is transferred to its customers (affiliates), in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. Incidental items that are immaterial in the context of the contract are recognized as expense. The Company does not have any significant financing components as payment is received at or shortly after the point of service provided.
#### **Income Taxes**
The Company has elected to be treated as a corporation for tax purposes and, as such, is liable for federal or state income taxes.
The Company recognizes and measures its unrecognized tax benefits in accordance with Financial Accounting Standards Board (" FASB" ) ASC 740, Income Taxes. Under that guidance, the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. The measurement of unrecognized tax benefits is adj usted when new information is available or when an event occurs that requires a change.
#### **The Allowance for Credit Losses**
Effective January 1, 2020, the Company adopted ASC Topic 326, Financial Inst rument s – Credit Losses (" ASC 326" ). ASC 326 impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset. Under the accounting update, the Company could determine there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the client).
The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments, including fees and other receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company' s expectation of the collectability in determining the allowance for credit losses. The Company' s expectation is that the credit risk associated with receivables from related parties is not significant, accordingly, the Company has not provided an allowance for credit losses at December 31, 2020.
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## C. Relat ed-part y t ransact ions
All revenues are generated from intragroup arrangements and rebilling with iM Global Partner Group affiliates.
The Company has an expense sharing agreement with its Parent , whereby t he Parent provides cert ain administ rat ive services in connect ion wit h t he Company' s operat ions. In exchange for t hese administ rat ive services, the Company is billed a represent at ive allocat ion of direct expenses based on t he t ime allocat ed by regist ered personnel to the Company' s broker dealer act ivit ies plus a mont hly fixed overhead charge.
At December 31, 2020, t ot al fees owed t o t he Parent was approximat ely \$30,000.
## D. Equit y
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At December 31, 2020, the Company has one class of membership units allocated amongst one member.
## E. Income t ax
The Company has est ablished valuat ion allowance as t hey deemed it more likely t han not t o realize t he deferred t ax asset . The valuat ion allowance increased by approximately \$189,000 at December 31, 2020.
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## F. Concent rat ion of credit risk
The Company is engaged in brokerage and distribut ion act ivit ies in which count erpart ies are primarily mut ual fund companies. In t he event count erpart ies do not fulfill their obligat ions, t he Company may be exposed t o risk. The risk of default depends on the creditwort hiness of t he counterpart y or issuer of t he financial product . Under ASC 326, t he Company has evaluated t he credit wort hiness of client count erpart ies and issuers of financial products and det ermined t hat credit risk is minimal, hence, no allowance for credit losses was est ablished for t he year ended December 31, 2020.
#### **Risks and Uncertainties**
During 2020, t he World Healt h Organizat ion declared COVID-19 t o const it ut e a " Public Health Emergency of Int ernat ional Concern." This pandemic has disrupted economic market s and t he economic impact , durat ion and spread of t he COVID-19 virus is uncert ain at t his t ime. The impact on financial market s and the overall economy, all of which are highly uncert ain, cannot be predict ed. If t he financial markets and/ or t he overall economy are impacted for an ext ended period t he Company' s result s may be affect ed. The financial st at ement does not include any adj ustments that might result from t he outcome of t his uncert aint y.
## G. Net capit al requirement s
The Company is a member of FINRA and is subj ect to the SEC Uniform Net Capital Rule 15c3-1. This rule requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 or 8 to 1 in the first year of operation. Net capital and the related net capital ratio may fluctuate on a daily basis. At December 31, 2020 the Company had net capital of \$121,148 which \$116,148 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 0.41 to 1.
### H. Subsequent event s
The Company evaluates events occurring after the date of the balance sheet through February 22, 2021, the date this financial statement was available for issuance, for potential recognition or disclosure in its financial statements. The Company did not identify any material subsequent events requiring adj ustment to or disclosure in its financial statement.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.