# MAGEN FINANCIAL LLC X-17A-5 (2021-03-01) — Broker-dealer annual report - Company: MAGEN FINANCIAL LLC - Form: X-17A-5 - Filed: 2021-03-01 - Period: 2020-12-31 - Accession: 0001786341-21-000006 - CIK: 1786341 - File #: 8-70397 - Material weakness: No - Auditor: Berkower LLC - Auditor location: Iselin, NJ - Contact: GARY CUCCIA - Phone: 732-713-9607 - Signed by: JOHN TEARS (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1786341/000178634121000006/magenedgarbalsheet.pdf --- {0}------------------------------------------------ Magen Financial, LLC Statement of Financial Condition December 31, 2020 {1}------------------------------------------------ # Magen Financial, LLC # STATEMENT OF FINANCIAL COND[TION DECEMBER 3 1, 2020 ## CONTENTS | 7A-5, PART lII
FORM X-1 | PAGE
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2 | |---------------------------------------------------------|------------------| | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTrNG FIRM | 3 | | FINANCIAL STATEMENT | | | Statement of Financial Condition | 4 | | Notes to Financial Statement 5 - | 6 | {2}------------------------------------------------ | | UNITEDSTATES
SECURITIES AND EXCHANGE COMMISSION
Wasbingt-0n, D.C. 20549
ANNUAL AUDITED REPORT
FORM X-17A-5
PART Ill | | 0MB Number:
Expires:
hours oer resnnnse | 0MB APPROVAL
3235--0123
October 31, 2023
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SEC FILE NUMBER
e-703397 | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--|-----------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--| | | FACING PAGE
Information Required of Brokers and Dealers Pursuant to Section 17 of the
Securities Exchange Act of 1934 and Rule l 7a-S Thereunder | | | | | | REPORT FOR THE PERIOD BEGINNING | B/10/2020 | | AND BNDINO 12/31/2020 | | | | | MM/DD/VY | | | MM/DD/VY | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF BROKER-DEALER: MAGEN FINANCIAL LLC | | | | OFFICIAL USE: ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
411 THEODORE FREMD AVENUE -
SUITE 206 SOUTH | | | | FIRM I.D. NO. | | | RYE | (No. and Street)
NW | | 10580 | | | | (City) | (State) | | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
JOHN TREAR\$ 914-416-5957 | | | | | | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
Berkower LLC | | | | | | | | (Name - if individual, state last, fvsl, middle name) | | | | | | 517 Route 1, Suite 4103 | lselin | | NJ | 08830 | | | (Address) | (City) | | (State) | {Zip Code) | | | CHECK ONE:
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Certified Public Accountant
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PubLic Accountant
Accountant oot 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/acts and circumstances relied on as the basis/or the exemption. See Section 240.17a-5(e)(2)* ' I **Potential persona who are to reepond to the collection of Information contained In this form are not required to respond unless the form displays a currently valld 0MB control number.** SEC 1410 (11-05) {3}------------------------------------------------ ![](_page_3_Figure_0.jpeg) {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 517 Route One, Suite 4103 lselln, NJ 08830 ~ (732) 781-2712 Berkower.lo ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Sole Member of Magen Financial, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of **Magen Financial, LLC** (the "Company'') as of December 31 , 2020 and the related notes (collectively referred to as 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 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 tequire 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. 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 2020. *<8µ/4-wu--~* Berkower LLC lselin, New Jersey February 28, 2021 {5}------------------------------------------------ ## Magen Financial, LLC ## STA1EMENT OF FINANCIAL CONDITION ## DECEMBER 31 , 2020 #### ASSETS | Cash and cash equivalents | 314,020
\$ | |----------------------------------------|---------------| | Computer equipment | 24,088 | | Prepaid expenses and other assets | 101,816 | | TOT AL ASSETS | 439,924
\$ | | LIABfLITIES AND MEMBER'S EQUITY | | | LIABILITIES | | | Accrued expenses and other liabilities | 6,356
\$ | | | | | TOTAL LIABILITIES | 6,356 | | MEMBER'S EQUITY | 433,568 | | TOTAL LIABfLITIES AND MEMBER'S EQUfTY | 439,924
\$ | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ # Magen Financial, LLC Notes to financial statement December 31, 2020 # **NOTE** I - **ORGANIZATlON AND SUMMARY OF SIGNIFlCANT ACCOUNTING POLICIES** ## *Orga11izatio11 and business* Magen Financial, LLC (the "Company") was formed on July 16, 20 19, pursuant to the laws of the State of Delaware and approved as a broker / dealer by Financial Industry Regulatory Authority, Inc. on August 10, 2020. The Company ' is a broker-dealer registered with the Securities and Exchange Commission and is a member of the Financial lndustry Regulatory Authority, Inc. Magen Financial, LLC is a wholly owned subsidiary of Hyber Holdings LLC (the ''Parent"). The Company intends to engage in Interdealer Broking in the Equity Derivative Markets introducing clients to each other in return for a commission. As of December 31 , 2020, the Company has not yet commenced operations. #### *Cash a11d Cash Equivalent* For purposes of reporting cash flows, the company considers cash and operating bank accounts, cash on hand, demand deposits, and highly liquid debt instruments purchased with a maturity of three months or less as cash and cash equivalents. The Company's cash is held at a financial institution in the United States. Its cash balances may at times exceed Federally insured limits. #### *Estimates* The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### */11come taxes* The Company is recognized as a limited liability company by the Internal Revenue Service. The Company's member is liable for federal and state income taxes on its taxable income. The Company is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. The Company files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states. The Company is subject to income tax return examinations by major taxing authorities for all periods since July 16, 2019. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that reduces net assets. However, the Company's conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof. The Company recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income taxes payable, if assessed. No interest expense or penalties have been recognized as of and for the period ended December 3 1, 2020. {7}------------------------------------------------ # Magen Financial, LLC Notes to financial statement December 31, 2020 #### *NOTE* 2- *NET CAPITAL REQUIREMENTS* The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule l 5c3- l ), 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. The rule of the "applicable" exchange also provides that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to I. At December 31 , 2020, the Company had regulatory net capital of \$307,664, which was \$302,664 in excess of its required minimum of \$5,000. The Company's percent of aggregate indebtedness to net capital ratio was 2.07%. ## *NOTE 3* - *RELATED PARTY TRANSACTIONS* The Parent contributed \$500,000 as permanent capital on November 17, 2020. ## *NOTE* **4** - *FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES* The Company is engaged in various trading and brokerage activities in which counterparties primarily include brokerdealers, banks and other financial institutions. In the event that counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty with which it conducts business. The Company's financial instruments, including cash, receivables, payables, other assets and accrued expenses are carried at amounts that approximate fair value due to the short-term nature of those instruments. #### *NOTE* **5-** *COMMITMENTS AND CONTINGENCIES* The Company currently has no commitments and contingencies. #### *NOTE6- COMPUTER EQUIPMENT* The company purchased an aggregate of \$24,088 of computer equipment as of December 3 I, 2020. No deprecation has been taken as the equipment is not yet in service. #### *NOTE* 7 - *SUBSEQUENT EVENTS* On February 12, 2021 , the Parent made a \$500,000 capital contribution to the Company. Subsequent events have been evaluated for disclosure through the date these financial statements were issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.