# SECFI SECURITIES, LLC X-17A-5 (2022-03-31) — Broker-dealer annual report - Company: SECFI SECURITIES, LLC - Form: X-17A-5 - Filed: 2022-03-31 - Period: 2021-12-31 - Accession: 0001795833-22-000001 - CIK: 1795833 - File #: 8-70457 - Type: Broker-dealer - Material weakness: No - Auditor: CITRIN COOPERMAN & COMPANY LLP - Auditor location: NEW YORK, NY - Contact: Richard Daniels - Phone: 2127514422 - Email: vieje@secfi.com - Website: secfi.com - Signed by: Vieje Piauwasdy (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1795833/000179583322000001/SecFiS2021SHORT.pdf --- {0}------------------------------------------------ # SECFI SECURITIES, LLC Statement of Financial Condition December 31, 2021 With Report of Independent Registered Public Accounting Firm {1}------------------------------------------------ | SECURITIES AND EXCHANGE COMMISSION | | | | UIVIB APPROVAL | | | |--------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|--------------------------------------------------------|---------|--------------------------------------|--------------------------------------------|--| | Washington, D.C. 20549 | | | | OMB Number:
3235-0123 | | | | | | | | Expires:
Estimated average burden | October 31, 2023 | | | | | | | hours per response | 12.00 | | | | ANNUAL AUDITED REPORT | | | | | | | | | | | | SEC FILE NUMBER | | | FORM X-17A-5
PART III | | | | | | | | | | | | 8-70457 | | | | | | FACING PAGE | | | | | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | | REPORT FOR THE PERIOD BEGINNING 01/01/2021 AND ENDING | | | | | | | | | MM/DD/YY | | | MM/DD/YY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF FIRM: SECFI SECURITIES, LLC | | | | | | | | | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | | | | &Broker-dealer | _Security-based swap dealer | | | | | | | □ Check here if respondent is also an OTC derivatives dealer | | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | | 615 BATTERY STREET, 6TH FLOOR | | | | | | | | | | (No. and Street) | | | | | | SAN FRANCISCO | | CA | | 94111 | | | | (City) | | (State) | | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | NATHANIEL PIAUWASDY | 415-939-5421 | | | VIEJE@SECFI.COM | | | | (Name) | (Area Code - Telephone Number) | | | (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | | | CITRIN COOPERMAN & COMPANY, LLP | | | | | | | | | | (Name - if individual, state last, first, middle name) | | | | | | 50 Rockefeller Plaza | New York | | NY | | 10020 | | | (Address) | (City) | | (State) | | (Zip Code) | | | 11/02/2005 | | | | | 2468 | | | (Date of Registration with PCAOB)(if applicable) | | | | | (PCAOB Registration Number, if applicable) | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | UNITED STATES OMB APPROVAL \* Claims for exemption from the requirement that the annual 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. {2}------------------------------------------------ #### OATH OR AFFIRMATION l, Nathaniel Piauwasdy, swear (or affirm) that, to the best of my knowledge and belief, the firm of SecFi Securities LLC, as of December 31, 2021, 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. State of Florida County of Orange CEO Nathaniel Vieje Piauwasdy 03/28/2022 PASSPORT Notary Public # Matthew K. Howard Online Notary This filing\*\* contains (check all applicable boxes): - 区 (a) Statement of financial condition. - 区 (b) Notes to consolidated statement of financial condition. ![](_page_2_Picture_11.jpeg) Notarized online using audio-video communication - □ (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. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) 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. - □ (l) 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. - 口 (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 apropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 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. - മ (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 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. - മ (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. | (x) 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 have 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 240.18a-7(d)(2), as applicable. {3}------------------------------------------------ # Contents | Report of Independent Registered Public Accounting Firm | | | |---------------------------------------------------------|-----|--| | Financial Statement | | | | Statement of Financial Condition | 2 | | | Notes to the Financial Statement | 3-4 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Citrin Cooperman & Company, LLP Certified Public Accountants 50 Rockefeller Plaza New York, NY 10020 T 212.697.1000 F 212.697.1004 citrincooperman.com # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member SecFi Securities, LLC # Opinion on the Financial Statement We have audited the accompanying statement of financial condition of SecFi Securities, LLC as of December 31, 2021, 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 SecFi Securities, LLC as of December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. # Basis for Opinion This financial statement is the responsibility of SecFi Securities, LLC's management. Our responsibility is to express an opinion on SecFi Securities, 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 SecFi 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 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 SecFi Securities, LLC's auditor since 2020. New York, New York March 31, 2022 "Citrin Cooperman" is the brand under which Citin Cooperman & Company, LLP, a licensed independent CPA firm, and Citin Cooperman Advisors I.L.C serve clients' business needs. The two firms operate as separate legal entities in an alternative practice structure. Citin Cooperman is an independent member of Moore North America, which is itself a regional member of Moore Global Network Limited (MGNL). {5}------------------------------------------------ # SecFi Securities, LLC Statement of Financial Condition December 31, 2021 #### Assets | Cash
Fee receivable, net | ತಿ | 2,465,806
13,500 | |---------------------------------------|-------|---------------------| | Prepaid expenses
Total assets | | 20.493 | | | લ્ત્ર | 2,499,799 | | Liabilities and Member's equity | | | | Liabilities | | | | Accounts payable and accrued expenses | સ્ત્ર | 217,241 | | Due to affiliate | | 1,550,559 | | Total liabilities | | 1,767,800 | | Member's equity | | 731,999 | | Total liabilities and member's equity | S | 2,499,799 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ # 1. Nature of business SecFi Securities, LLC (the "Company") is a limited liability company established in the state of Delaware on October 18, 2018, and is based in San Francisco, CA. The Company is wholly-owned by SecFi, Inc. (the "Parent"). On January 13, 2020, the Company became a registered broker-dealer with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory ("FINRA"). The Company acts as a private placement broker for Regulation D private placements. # 2. Summary of significant accounting policies ### Basis of Presentation The financial statement has been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). #### Use of Estimates The preparation of the financial statement in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the financial statement. Actual results could differ from those estimates. #### Cash Cash consists of cash held at one financial institution which at times may exceed federally insured limits. The Company has not experienced any losses on this account and does not believe it is exposed to any significant credit risk with respect to its depository institutions. #### Fee Receivable, net The Company caries its fee receivable at cost less an allowance for credit basis, the Company evaluates its fee receivable and establishes an allowance for credit losses based on a history of past write-offs and collections and current credit conditions. No allowance for credit losses was required at December 31, 2021. #### Allowance for Credit Losses In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326). The ASU introduces a new credit loss methodology, Current Expected Credit Losses ("CECL"), which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. Since its original issuance in 2016, the FASB has issued several updates to the original ASU. The CECL methodology utilizes a lifetime "expected credit loss" measurement objective for the recognition of credit losses for loans, held-to-maturity securities and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The methodology replaces the multiple existing impairment GAAP, which generally require that a loss be incurred before it is recognized. For financial assets measured at amortized cost (e.g., cash and cash equivalents and receivables from clients), the Company has concluded that there are de minimus expected credit losses based on the nature and contractual life or expected life of the financial assets and immaterial historic and expected losses. {7}------------------------------------------------ #### Income Taxes The Company is a limited liability company and is treated as a partnership for income tax reporting purposes. The Internal Revenue Code ("IRC") provides that any income or loss is passed through to the member for federal and state income tax purposes. Accordingly, the Company has not provided for federal and state income taxes. The Company's Parent files its income tax returns in the U.S. and various state and local jurisdictions. At December 31, 2021, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances require. # 3. Concentrations and credit risk In the normal course of business, the Company maintains its cash balances in one financial institution, which may exceed federally insured limits. The Company is subject to credit risk should the financial institution be unable to fulfill its obligations. The Company has not experienced any losses in such accounts and management monitors the financial condition of the financial institution and does not anticipate any losses from this counterparty. The Company had no significant customer concentration during 2021. All placements sold through the Company are purchased by one counterparty. The Company expects to maintain this relationship with the purchaser. # 4. Related-party transactions #### Service Agreement Pursuant to a service agreement, the Parent provides various services and other operating assistance to the Company. These include professional services, the use of physical premises, utilities, fixed assets, subscriptions, taxes, personnel and other general and administrative services. At December 31, 2021, the Company had a due to affiliate balance of approximately \$412,000. #### Master Services Agreement Per a Master Services Agreement") between the Company and several affiliates, the Company shares profits resulting from the Company's brokerage business via a profit split method as defined by the IRC, after remunerating returns that can be benchmarked via the comparable profits method. At December 31, 2021, the Company had a due to affiliate balance of approximately \$1,139,000. ### 5. Net capital requirement The Company is a member of FINRA and is subject to the Securities and Exchange Commission Uniforn Net Capital Rule 15c3-1. This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, shall not exceed 8 to 1 for the first year, and then 15 to 1 thereatter. At December 31, 2021, the Company's net capital was approximately \$698,000, which was approximately \$580,000 in excess of its minimum net capital requirement of approximately \$118,000. #### Subsequent events 6. The Company has performed an evaluation of events that have occurred subsequent to December 31, 2021 through March 31, 2022, the date of this report, and has determined that there have been no material subsequent events that occurred during the period that would require recognition or disclosure in this financial statement. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.