# FUNDOPOLIS SECURITIES, LLC X-17A-5 (2023-03-30) — Broker-dealer annual report - Company: FUNDOPOLIS SECURITIES, LLC - Form: X-17A-5 - Filed: 2023-03-30 - Period: 2022-12-31 - Accession: 0001780115-23-000004 - CIK: 1780115 - File #: 8-70362 - Type: Broker-dealer - Material weakness: No - Auditor: Morris Morris, P.C. - Auditor location: Needham Hights, MA - Contact: GARY CUCCIA - Phone: 732-713-9607 - Email: gary@finopcfo.com - Website: finopcfo.com - Signed by: John O'Keefe (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1780115/000178011523000004/Fundopolisedgar.pdf --- {0}------------------------------------------------ Financial Statements and Supplemental Schedules Required by the U.S. Securities and Exchange Commission Including Independent Registered Public Accountant's Report Thereon For the Year-Ended December 31, 2022 {1}------------------------------------------------ # FINANCIAL STATEMENTS, FORM X-17A-5, PART III, SUPPLEMENTAL INFORMATION, AND REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM # DECEMBER 31, 2022 ## CONTENTS | | PAGE | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------| | FORM X-17A-5, PART III | | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 3 - | | | FINANCIAL STATEMENTS | | | Statement of Financial Condition | | | Statement of Operations | | | Statement of Changes in Member's Equity | | | Statement of Cash Flows | 8 | | Notes to Financial Statements | | | SUPPLEMENTAL INFORMATION - Schedule I | | | COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 | | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, | | | ASSERTION REGARDING EXEMPTION UNDER EXCHANGE ACT RULE 15C3-3 13 | | {2}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: ϯϮϯϱͲϬϭϮϯ Expires: KĐƚ͘ϯϭ͕ϮϬϮϯ Estimated average burden hours per response: > SEC FILE NUMBER 8-70362 # **ANNUAL REPORTS FORM X-17A-5 PART III** **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 01/01/2022 12/31/2022 MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION** ### NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ FUNDOPOLIS SECURITIES, LLC TYPE OF REGISTRANT (check all applicable boxes): ܆ Broker-dealer ܆ Security-based swap dealer ܆ Major security-based swap participant ܆ Check here if respondent is also an OTC derivatives dealer ■ ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | 10
CONVERSE
PLACE | -
FLOOR
2-
AD
_____________________________________________________________________________________ | MELIORA | SUITE | | |--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|--------------------------------------------|--| | | (No. and Street) | | | | | WINCHESTER | MA
_____________________________________________________________________________________ | | 01890 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | GARY
CUCCIA | 732-713-9607
_____________________________________________________________________________________ | | gary@finopcfo.com | | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | Morris
Morris,
P.C. | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
_____________________________________________________________________________________ | | | | | | (Name – if individual, state last, first, and middle name) | | | | | 32
Kearney
Road | Needham
Heights
_____________________________________________________________________________________ | MA | 02494 | | | (Address) | (City) | (State) | (Zip Code) | | | 01/06/2010 | _____________________________________________________________________________________ | 4066 | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | 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-5(e)(1)(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 OMB control number.** {3}------------------------------------------------ ### OATH OR AFFIRMATION | John O'Keefe | , swear (or affirm) that, to the best of my knowledge and belief, the | | |-----------------------------------------------------------------------|-----------------------------------------------------------------------|-------| | financial report pertaining to the firm of FUNDOPOLIS SECURITIES. LLC | | SC OF | 12/31 2 022 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. ![](_page_3_Picture_4.jpeg) Signature: Title: CEO # This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - [ (b) Notes to consolidated statement of financial condition. - (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). - (d) Statement of cash flows. - (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [f) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [i) Computation of tangible net worth under 17 CFR 240.18a-2. - [] Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - | | |} 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. - [1] Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - ] (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 240.15c3-1, 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. - [p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - (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. - (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (t) Independent public accountant's report based on an examination of the statement of financial condition. - [u] Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - [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. - [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. - | | Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - [y) Report describing any material inadequacies found to existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - [ (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18c-7(d)(2), as applicable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # Report of Independent Registered Public Accounting Firm March 28, 2023 # TO THE DIRECTORS AND EQUITY OWNER OF FUNDOPOLIS SECURITIES, LLC 10 Converse Place Winchester, MA 01890 # Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Fundopolis Securities, LLC (the "Company") as of December 31, 2022, the related statements of operations, changes in member's equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022, 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 the Company's management. Our responsibility is to express an opinion on the Company'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 the Company 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. 32 Kearney Road • Needham Heights, MA 02494 • (781) 455-6900 • Fax (781) 455-6902 ![](_page_4_Picture_10.jpeg) The CPA. Never Underestimate the Value. 5M {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) # Report of Independent Registered Public Accounting Firm (Continued) # TO THE DIRECTORS AND EQUITY OWNER OF FUNDOPOLIS SECURITIES, LLC March 28, 2023 Page 2 # Supplemental Information The information contained in The Computation of Net Capital Under Rule 15c 3-1 of the Securities and Exchange Commission ("Supplemental Information") has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The Supplemental Information is the responsibility of the Company'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 Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission is fairly stated, in all material respects, in relation to the financial statements taken as a whole. Morris & Morris, P.C. Certified Puhlic Accountants We have served as the Company's auditor since 2020. Needham Heights, MA 02494 ![](_page_5_Picture_8.jpeg) The CPA. Never Underestimate the Value su {6}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION # DECEMBER 31, 2022 ## ASSETS | Cash | ಲ್ಲಿ | 17,696 | |-------------------------------------------------------------------------------|------|--------| | Prepaid expenses and other assets | | 17,216 | | TOTAL ASSETS | ಕ್ಕಾ | 34,912 | | LIABILITIES AND MEMBER'S EQUITY | | | | LIABILITIES
Payable to affiliate
Accrued expenses and other liabilities | S | 1,927 | | TOTAL LIABILITIES | | 1,927 | | MEMBERS EQUITY | | 32,985 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | ಕ್ಕಿ | 34,912 | {7}------------------------------------------------ ## STATEMENT OF OPERATIONS ## FOR THE YEAR ENDED DECEMBER 31, 2022 | REMENTOLES | | | |----------------------------------|-------|----------| | Placement and Advisory Fees | S | 25,000 | | TOTAL REVENUES | | 25,000 | | EXPENSES | | | | Occupancy and equipment expenses | | 24,054 | | Regulatory Fees | | 62,651 | | Professional fees | | 6,054 | | Other expense | | 1,838 | | TOTAL EXPENSES | | 94,597 | | NET LOSS | ਦੇ ਕੋ | (69,597) | {8}------------------------------------------------ # STATEMENT OF CHANGES IN MEMBER'S EQUITY # FOR THE YEAR ENDED DECEMBER 31, 2022 | BALANCE - BEGINNING OF YEAR | es | 40,072 | |-----------------------------|----|----------| | Net LOSS | | (69,597) | | Contributions | | 62,510 | | BALANCE - END OF YEAR | GB | 32,985 | {9}------------------------------------------------ # STATEMENT OF CASH FLOWS ## FOR THE YEAR ENDED DECEMBER 31, 2022 | OPERATING ACTIVITES | | |-------------------------------------------------------------------------------|------------------| | Net loss | ಲ್ಲಿ
(69,597) | | Adjustments to reconcile net income to net cash used in operating activities: | | | Increase in operating assets: | | | Payable to affiliate | 1,927 | | Prepaid expenses and other assets | (2,684) | | Decrease in operating liabilities: | | | Accrued expenses and other liabilities | (25,234) | | TOTAL ADJUSTMENTS | (25,991) | | NET CASH USED IN OPERATING ACTIVITIES | (95,588) | | FINANCING ACTIVITIES | | | Member contributions | 62,510 | | NET CASH PROVIDED BY FINANCING ACTIVITIES | 62,510 | | NET DECREASE IN CASH AND CASH EQUIVALENTS | (33,078) | | CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR | 50,774 | | CASH AND CASH EQUIVALENTS - END OF YEAR | ਦਰ
17,696 | {10}------------------------------------------------ ## FUNDOPOLIS SECURITIES. LLC Notes to Financial Statements December 31, 2022 ## NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Note 1: Organization and Nature of business Nature of Operations - Fundopolis Securities LLC was formed in May 2019 and is a Delaware limited liability company. The Company is a broker-dealer which acts as a placement agent in connection with private placement transactions. The Company is a Member of the Financial Industry Regulatory Authority (FINRA) pursuant to its Membership Agreement dated June 2020. The Company is a Member of the Securities Investor Protection Corp. (SIPC). The Company is a wholly owned subsidiary of Fundopolis LLC (the Parent). #### Note 2: Summary of significant accounting nolicies Method of Accounting -The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, as established by the Financial Accounting Standards Board (FASB), utilizing the accrual-basis of accounting. Cash and Cash Equivalents - Includes deposits with a maturity of three months or less. Income Taxes - The Company is a Limited Liability Company. Accordingly, net income is allocated and taxed to the individual member. No income tax provision has been included in the determination of net income. The Company follows the provisions of Accounting for Uncome Taxes as provided for in the Income Taxes topic of the FASB Accounting Standards Codification. This statement clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in an entity's financial statements. It also prescribes a recognition threshold of more likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. There was no cumulative effect on the Company's financial statements related to following these provisions, and no interest or penalties related to uncertain tax positions were accrued. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for tax periods in progress. Commission Revenue - Commissions earned in connection with private placements are recognized at the closing of funds raised delivery of funds to the Issuer. The Company has adopted Accounting Standards Codification (ASC) 606 which established a new single revenue framework to recognize revenue from contracts with customers and offers expanded disclosures for revenue transactions. {11}------------------------------------------------ ## FUNDOPOLIS SECURITIES, LLC Notes to Financial Statements December 31, 2022 Use of Estimates - In preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments - The carrying amount of any financial instruments, including cash, prepaids, other current assets, accounts payable, and accrued expenses, approximate fair value due to the short maturity of these instruments. Other Assets - Included in other assets are the Company's FINRA Year 2022 Annual Renewal payment which is amortized in 1/12th increments on a monthly basis. Subsequent events -The Company has evaluated subsequent events through March 28, 2023 which is the date the financial statements were available to be issued. ### Note 3: Net capital requirements The Company is subject to the Securities and Exchange Commission (SEC) Rule 15c3-1, which 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. On December 31, 2022. the Company had net capital of \$15,769, which was \$10,769 in excess of its required net capital of \$5,000. The Company's net capital ratio was 12.22 to 1, on December 31, 2022. #### Note 4: Concentration of credit risk Cash - The Company maintains cash balances at a financial institution insured by the Federal Deposit Insurance Corporation. There were no uninsured cash balances on December 31, 2022. #### Note 5: Statement of cash flows For the year ended December 31, 2022, the Company did not have any significant non-cash investing or financing activities. #### Note 6: Securities Exchange Act (SEA) Exemption The Company is not claiming an exemption from SEA 15c3-3, in reliance on foothote 74 to SEC Release 34-70073 and as discussed in Q&A 8 of the related FAQ issued by the SEC staff. In order to avail itself of this option, the Company has represented that it does not, and will not, hold customer funds or securities, and that its business activities are, and will remain, limited to the Private Placements of Securities. {12}------------------------------------------------ # Schedule 1 Computation of Net Capital Under SEC rule 15c3-1 December 31, 2022 | MEMBERS' EQUITY | S | 32,985 | |----------------------------------------------------------------------------------------------------------|---|----------| | LESS NON-ALLOWABLE ASSETS | | 17,216 | | NET CAPITAL BEFORE HAIRCUTS ON SECURITIES | | 15,769 | | LESS HAIRCUTS | | | | NET CAPITAL | | 15,769 | | REQUIRED NET CAPITAL (GREATER OF \$50,00 OR 6 2/3% OF AI) | | 5,000 | | EXCESS NET CAPITAL | | 10,769 | | | | | | AGGREGATE INDEBTEDNESS | | 1,927 | | AGGREGATE INDEBTEDNESS TO NET CAPITAL | | 12.22% | | Reconciliation with Company's computation included in Part II of Form X-17A-5 as of
December 31, 2022 | | | | Net Capital as reported in Company's Part II (unaudited) FOCUS
report, as amended on March 28, 2023. | | \$15,769 | | Net Capital per above | | \$15,769 | There are no material differences between the above calculation and calculation included in the Company's most recent FOCUS Report filed as of December 31, 2022. {13}------------------------------------------------ ![](_page_13_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON EXEMPTION REPORT March 28, 2023 ## TO THE DIRECTORS AND EQUITY OWNER OF FUNDOPOLIS SECURITIES, LLC 10 Converse Place Winchester, MA 01890 We have reviewed management's statements, included in the accompanying Statement of Exemption from SEC Rule 15c3-3. in which Fundopolis Securities. LLC (the Company) identified that it does not meet any of the exemption conditions of paragraph (k) of Rule 15c3-3 and was covered by footnote 74 and was in compliance throughout the most recent fiscal year without exception. The Company'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 the Company'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 statentents. 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 Rule 15c3-3 under the Securities and Exchange Act of 1934. Certified Public Accountants 32 Kearney Road • Needham Heights, MA 02494 • (781) 455-6900 • Fax (781) 455-6902 ![](_page_13_Picture_10.jpeg) The CPA. Never Underestimate the Value. SM {14}------------------------------------------------ ## Assertations Regarding Exemption Provisions I, as Financial and Operations Principal of Fundopolis Securities, LLC (the "Company") am responsible for compliance with the annual reporting requirements under Rule 17a-5 of the Securities Exchange Act of 1934. Those requirements compel a broker or dealer to file annual reports with the Securities and Exchange Commission (SEC) and the broker or dealers designated examining authority (DEA). One of the reports to be included in the annual filing is an exemption report prepared by an independent public accountant based upon a review of assertions provided by the broker or dealer. Pursuant to that requirement, the management of the Company hereby makes the following assertions: To the best of its knowledge and belief, the Company states the following: - 1. The Company is not claiming an exemption from SEA 15c3-3, in reliance on footnote 74 to SEC Release 34-70073 and as discussed in Q&A 8 of the related FAQ issued by the SEC staff In order to avail itself of this option, the Company has represented that it does not, and will not, hold customer funds or securities, and that its business activities are, and will remain, limited to the Private Placements of Securities. - 2. The Company has met the identified exemption provisions in its FINRA Membership Agreement dated June 8, 2020 throughout the most recent fiscal year without exception. ### Fundopolis Securities LLC Name of Company I \_John O'Keefe\_, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is Jrue and porrect .-By: Title/ CEO TAMMY REED Notary Public - State of Florida Commission # GG 922377 My Comm. Expires Nov 22, 2017 Bonged through National Notary Assn Date: March 28, 2023 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.