# MENTOR SECURITIES, LLC X-17A-5 (2024-04-01) — Broker-dealer annual report - Company: MENTOR SECURITIES, LLC - Form: X-17A-5 - Filed: 2024-04-01 - Period: 2023-12-31 - Accession: 0001780350-24-000003 - CIK: 1438312 - File #: 8-67923 - Type: Broker-dealer - Material weakness: No - Auditor: LMHS PC - Auditor location: Norwell, MA - Contact: Mark T Manzo - Phone: 2015191905 - Email: mmanzo@moppartners.com - Website: moppartners.com - Signed by: Davis R Blaine (Chairman) Original filing: https://www.sec.gov/Archives/edgar/data/1438312/000178035024000003/mentpublicrpted.pdf --- {0}------------------------------------------------ # **Mentor Securities, LLC** **Statement of Financial Condition** **For the Year Ended December 31, 2023** {1}------------------------------------------------ #### **Mentor Securities, LLC** #### **December 31, 2023** #### **Table of Contents** | Facing page and Oath or Affirmation Page | 1-2 | |--------------------------------------------------------|-----| | Report oflndependent Registered Public Accounting Firm | 3 | | Financial Statements | | | Statement of Financial Condition | 4 | | Notes to the Financial Statements | 5-8 | {2}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington,·D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART Ill** | SEC FILE NUMBER | |-----------------| | | 8-69723 **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 **0 1/01 /23** MM/00/YY AND ENDING **12/31 /23** MM/00/YY **I** **A. REGISTRANT IDENTIFICATION** # NAME OF FIRM: MENTOR SECURITIES, LLC TYPE OF REGISTRANT (check all applicable boxes): C!l Broker-dealer □ Security-based swap dealer □ Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 200 N. WESTLAKE BOULEVARD, SUITE 204 | | (No. and Street) | | | | | |-----------------------------------------------------------------------------------------|-------------------------------|-----------------|------------------------|--|--| | WESTLAKE VILLAGE | CA | | 91362 | | | | (City) | (State) | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Mark T Manzo
(201) 519-1905 | | | mmanzo@moppartners.com | | | | (Name) | (Area Code -Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
LMHS, P.C. | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | 80 Washington St, Bldg S | Norwell | MA | 02061 | | | | (Address) | (City) | (State) | (Zip Code) | | |----------------------------------------------|-----------------------|-------------------------------------------|------------|--| | 02/24/2009 | | 3373 | | | | t, of Reg;stcatloo w;th PCAOBl(lf appUcable) | | (PCAOB Reg;stcatloo Nombec, ;f appUcable) | | | | r | 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.** {3}------------------------------------------------ #### **OATH OR AFFIRMATION** I, DAVIS R, BLAINE swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of MENTOR SECURITES, LLC as of 12/31 2 2023 , 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. Title: Chairman Notary Public #### **This filing\*\* contains (check all applicable boxes):** - iii (a) Statement of financial condition. - iii (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 24O.15c3-1 or 17 CFR 24O.18a-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 24O.18a-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 24O.15c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 24O.15c3-3 or Exhibit A to 17 CFR 24O.18a-4, as applicable. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 24O.15c3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 24O.15c3-3. - □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 24O.15c3-3(p)(2) or 17 CFR 24O.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 24O.15c3-1, 17 CFR 24O.18a-1, or 17 CFR 24O.18a-2, as applicable, and the reserve requirements under 17 CFR 24O.15c3-3 or 17 CFR 24O.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. - !i (q) Oath or affirmation in accordance with 17 CFR 24O.17a-5, 17 CFR 24O.17a-12, or 17 CFR 24O.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 24O.17a-5 or 17 CFR 24O.18a-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 24O.17a-5 or 17 CFR 24O.18a-7, as applicable. - iii (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 24O.17a-5, 17 CFR 24O.18a-7, or 17 CFR 24O.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 24O.17a-5 or 17 CFR 240.18a-7, as applicable. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 24O.17a-5 or 17 CFR 24O.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 24O.15c3-le or 17 CFR 24O.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 24O.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 240.18a-7{d){2}, as applicable.* {4}------------------------------------------------ A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which tl1is certificate is attached, and not tl1e truthfulness, accuracy, or validity of that document. | State of Califomi� / | | l | | | | | |------------------------------------------------|---------------|----------|---------------|----------------------|---------------------------------------------|------------| | County of ___ v_ rf_,_1 _f_'-'I_,--+-'------- | | | | | | | | On _J_/_· 2_f/_/_2__-_Y_· _ | __ before me, | j , ./~/ | '
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rf | � 4vct� /1/d- | /,,,y | /,?,,tit r | | Date | | | | | /-/ere Insert Name' one! Title of th�fficer | | | personally appeared --�/)_c1_v1_·.s ____ R_. _ | | | _ | | __ /J_�_C/_1_t1_C.�------------ | | | | | | | Name(s) of Signer(s) | | | | | | | | | | | who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) 011 the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the i11stru111e11t. ![](_page_4_Picture_5.jpeg) I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragrnph is true and correct. WITNESS my hand and official seal. *Place Notary Seal and/or Stamp Above* Signature \_\_\_\_ //� *4*/\_,\_V'--\_L \_\_\_\_\_\_\_\_ \_ *Signature of Notary Public* **OPTIONAL** *Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.* **Description of Attached Docum:)jlt /)** Title or Type of Document: \_\_ �{i!\_�'l\_'l�vt-'-''i�(-�M-� .....,ff',,\_\_v\_r\_l.\_J\_· *\_r,,,\_""°' \_\_* 'x\_-\_-f\_7-\_,1\_�\_J'\_/t,\_r.\_l-\_1 \_\_ Document Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Number of Pages: \_\_\_\_ \_ Signer(s) Other Than Named Above: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ **Capacity(nes) Claimed by Signer(s)** Signer's Name: \_\_\_\_\_\_\_\_\_\_\_\_ \_ □ Corporate Officer - Title(s): \_\_\_\_\_\_ \_ □ Partner - □ Limited □ General □ Individual □ Attorney in Fact □ Trustee □ Guardian or Conservator □ Other: Signer is Representing: \_\_\_\_\_\_\_\_\_ \_ Signer's Name: \_\_\_\_\_ \_\_ \_\_\_\_ \_ □ Corporate Officer - Title(s): \_\_\_\_\_\_ \_ □ Partner - □ Limited □ General □ Individual □ Attorney in Fact □ Trustee □ Guardian or Conservator □ Other: Signer is Representing: \_\_\_\_\_\_\_\_\_ \_ ©2019 National Notary Association {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) *Report of Independent Registered Public Accounting Firm* To The Members Mentor Securities, LLC Westlake Village, California #### *Opinion on the Financial Statements* We have audited the accompanying statement of financial condition of Mentor Securities, LLC, as of December 3 1, 2023, 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 Mentor Securities, LLC as of December 3 1, 2023, 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 entity's management. Our responsibility is to express an opinion on these 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 Mentor 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. *l.Jn,/IS/J.C.* LMHS,P.C. We have served as Mentor Securities, LLC's auditor since 2020. Norwell, Massachusetts March 29, 2024 ![](_page_5_Picture_13.jpeg) {6}------------------------------------------------ #### **MENTOR SECURITIES, LLC** ### **Statement of Financial Condition December 31, 2023** #### **ASSETS** | Cash and cash equivalents [Note 2] | \$
29,775 | |---------------------------------------|--------------| | Prepaid expenses | 4,954 | | Other assets | 5,128 | | Total assets | \$
39,857 | | LIABILITIES AND MEMBERS' EQUITY | | | Liabilites: | | | Current liabilities | | | Accounts payable & Accrued expenses | \$
2,370 | | Total liabilities | 2,370 | | | | | Members' equity : | | | Members' equity | 37,487 | | Total members' equity | 37,487 | | Total liabilities and members' equity | \$
39,857 | *The accompanying notes are an integral part of these financial statements* {7}------------------------------------------------ #### **Note 1: Organization** **Mentor Securities, LLC (the "Company") was organized in the State of California on April 27, 2007. The Company is currently registered as a broker-dealer under Section 15(b) of The Securities Exchange Act of 1934, a member of the Financial Industry Regulatory Authority ["FINRA"] and the Security Investor Protection Corporation ["SIPC"].** **The Company is engaged in business as a securities broker-dealer, which provides several classes of services, including private placements and merger and acquisitions.** **Under its membership agreement with FINRA the Company will not claim an exemption from SEA Rule 15c3-3. The Company is a Non-Covered firm that relies on Footnote 74 to SEC Release 34-70073. The Company does not hold or carry customer funds or securities.** #### **Note 2: Summary of Significant Accounting Policies** #### **Basis of Presentation** **The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company uses the accrual method of accounting.** #### **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 disclosures of contingent assets and liabilities at the date of the financial statements as well as the reported amount ofrevenues and expenses during the reporting period. Actual results could differ from these estimates.** #### **Cash and Cash Equivalents** **The Company considers all highly liquid instruments with an original maturity of three months or less when purchased to be cash equivalents. As of December 31, 2023, the Company had a cash balance of \$29,775.** #### **Revenue Recognition** **The company receives fees in accordance with tenns stipulated in its engagement contracts. Fees are recognized as earned. The Company also receives success fees when transactions are completed. Success fees are recognized when earned, which means the Company has no further continuing obligations and collection is reasonably assured. Retainer fees that are not subject to refund are recognized when received subject to the terms of engagement.** {8}------------------------------------------------ #### **Revenue Recognition (Continued)** #### **A. Significant accounting policy** **Revenue is measured based on a consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfied a performance obligation by transferring control over a product or service to a customer.** **Taxes and regulatory fees assessed by a government authority or agency that are both imposed on and concurrent with a specified revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.** #### **B. Nature of services** **Fees earned: This includes fees earned from providing Merger and Acquisition financial advisory services.** **C. Changes in Accounting Policy:** **The Company adopted Topic 606 "Revenue from Contracts with Customers" with a date of January 1, 2018. As a result, it has changed its accounting policy for revenue recognition as detailed below.** **The Company applied Topic 606 using the cumulative effect method - i.e. by recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of equity at January 1, 2018. This was immaterial. Therefore, any prior reporting infonnation has not been adjusted and continues to be reported under Topic 606.** **The Company provides advisory services on mergers and acquisitions (M&A). Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over timer for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. At December 31, 2023, the Company maintains that no such contract liabilities existed nor were there any circumstances whereby significant judgement was needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract.** #### **Professional fees** **As of December 31, 2023, the Company paid \$30,411 in professional fees, which included accounting, analysis, compliance and consulting services.** {9}------------------------------------------------ #### **Note 3: Securities owned** **As of the statement of financial condition date the Company does not own any corporate stocks or debt instruments.** #### **Note 4: Income taxes** **The Company, with the consent of its members, has elected to be a California Limited Liability Company. For tax purposes the Company is treated like a partnership, therefore in lieu of business income taxes for Federal and State income tax, all income or loss "flows through" to the members' individual income tax returns. However, provisions are made for the State of California's annual minimum tax and LLC fees that are reflected in these financial statements. As the tax obligations are passed through to its members, any audit or review considerations related to Internal Revenue Under section 650l(a) of the Internal Revenue Code (Tax Code) and section 301.650l(a)-l(a) of the Income Tax Regulations (Tax Regulations), the IRS is required to assess tax within 3 years after the tax return was filed with the IRS. Service assessments and statute of limitations thereof are borne by the Company's members.** #### **Note 5: Fair Value** **The Company adopted Financial Accounting Standards ("SF AS") ASC 820 Measurements and Disclosures, for assets and measured at fair value on a recurring basis. The ASC 820 had no effect on the Company's financial. ASC 820 accomplishes the following key objectives:** - **Defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date;** - **Establishes a three-level hierarchy (the "Valuation Hierarchy") for fair value measurements;** - **Requires consideration of the Company's creditworthiness when valuing liabilities; and expands disclosures about instruments measured at fair value.** **The Valuation Hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument's categorization within the Valuation Hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of the Valuation Hierarchy and the distribution of the Company's financial assets within it are as follows:** **Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.** {10}------------------------------------------------ - **Level 2 - inputs to the valuation methodology included quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full tenn of the financial instrument.** - **Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.** **Certain financial instruments are carried at cost on the statement of financial condition, which approximate fair value due to their short-tenn highly liquid nature. These instruments include cash and cash equivalents, accounts receivable, accrued expenses and other liabilities and deferred revenue.** #### **Note 6: Net capital requirements** **Pursuant to the Basic Unifonn Net Capital prov1s1ons of the Securities and Exchanges Commission, the Company is required to maintain a minimum net capital, as defined, in such provision. Further, the provisions require that the ratio of aggregate indebtedness, as defined, to net capital shall not exceed 15 to 1. Net capital and the related net capital ratio may fluctuate on a daily basis. At December 31, 2023 the Company had net capital and net capital requirements of \$27,405 and \$5,000 respectively. The Company's aggregate indebtedness to net capital ratio was .086 to 1 which is less than 15: 1.** #### **Note 7: Related party transactions** **The Company shares office space with an entity related by common management. The Company pays rent to one of its members for this office space. During the year December 31, 2023, the Company recorded \$1,800 in rent expense.** #### **Note 8: Commitments and Contingencies** **As of the audit date there are no contingencies, guarantees of debt, and the like. Rental commitment which includes administrative services is \$150.00 per month or \$1,800 annually.** #### **Note 9: Subsequent E vents** **Management has evaluated subsequent events through March 29, 2024, the date which the financial statements were available to be issued.** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.