# BEACON SECURITIES US LIMITED X-17A-5 (2022-03-31) — Broker-dealer annual report - Company: BEACON SECURITIES US LIMITED - Form: X-17A-5 - Filed: 2022-03-31 - Period: 2021-12-31 - Accession: 0001796384-22-000002 - CIK: 1796384 - File #: 8-70463 - Type: Broker-dealer - Material weakness: No - Auditor: KPMG LLP - Auditor location: ON, Z4 - Contact: Richard Daniels - Phone: 2127514422 - Email: rdaniels@dfppartners.com - Website: dfppartners.com - Signed by: Moshe Ifergan (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1796384/000179638422000002/bshort.pdf --- {0}------------------------------------------------ **Beacon Securities US Limited (A wholly owned subsidiary of Beacon Securities Limited)** **Statement of Financial Condition as of December 31, 2021** **With Report of Independent Registered Public Accounting Firm** {1}------------------------------------------------ ## **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL AUDITED REPORT FORM X-17A-5 PART** Ill | 0MB APPROVAL | | | | | |------------------------------|-----------|--|--|--| | 0MB Number: | 3235-0123 | | | | | Expires:
October 31, 2023 | | | | | | Estimated average burden | | | | | | hours per response | 12.00 | | | | SEC FILE NUMBER **8-70463** | | 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 | 11/11/2020 AND ENDING | 12/31/2021 | | | | MM/DD/VY | | | MM/DD/VY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: Beacon Securities US Limited | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | | ~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 P.O. Box No.) | | | | | | | | | | | 66 Wellington Street West Suite 4050 | {No. and Street) | | | | | Toronto | ON | | M5k1Hl | | | {City) | {State) | | {Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | 212-751-4422 | | RDaniels@dfppartners.com | | | Richard Daniels | | | | | | | (Area Code - Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | {Name - if individual, state last, first, middle name) | | | | | | Toronto | ON | M5H2S5 | | | | {City) | {State) | {Zip Code) | | | | | | 85 | | | | | | {PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | | (Name)
KPMG LLP
333 Bay Adelaide Centre
{Address)
{Date of Registration with PCAOB){if applicable) | | | | | {2}------------------------------------------------ #### **OATH OR AFFIRMATION** I, Moshe lfergan, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Beacon Securities US Limited , for the fourteen month period ended 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. | -------------t---""l'liv:1t1,1111.,,i.;i•WAOSE MERCADO
NOTARY PUBLIC, STATE OF NEW YORK
Registration No. 01 ME6423025
Qualiflecl In Queens County
Commission Expires October 4, 20c22 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | #### **This filing\*\* contains (check all applicable boxes):** - igi (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-l, 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. - □ (I) 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-l, 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 report or 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 240.15c3-le or 17 CFR 240.17a-12, as applicable. - □ (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 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}------------------------------------------------ # **Beacon Securities US Limited Index** | | Page(s) | |------------------------------------------------------------|---------| | Report of Independent Registered Public Accounting Firm 1 | | | Financial Statement | | | Statement of Financial Condition 2 | | | Notes to Financial Statement 3–5 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) KPMG LLP Bay Adelaide Centre 333 Bay Street, Suite 4600 Toronto, ON M5H 2S5 Canada Tel 416-777-8500 Fax 416-777-8818 # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholder and the Board of Directors Beacon Securities US Limited: ### *Opinion on the Financial Statements* We have audited the accompanying statement of financial condition of Beacon Securities US Limited (the Company) as of December 31, 2021, and the related notes (collectively, 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, 2021, in conformity with U.S. generally accepted accounting principles. ### *Basis for Opinion* This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this 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 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. Chartered Professional Accountants, Licensed Public Accountants We have served as the Company's auditor since 2021. Toronto, Canada March 31, 2022 {5}------------------------------------------------ # **Beacon Securities US Limited (A wholly owned subsidiary of Beacon Securities Limited) Statement of Financial Condition (Expressed in U.S. Dollars) December 31, 2021** ### **ASSETS** | Cash
Clearing Deposit (Note 6)
Due from Clearing Broker (Note 6)
Prepaid Expenses
Due from Parent (Note ) | \$
384,180
125,007
200,050
6,842
1,272 | |-----------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------| | TOTAL ASSETS | \$
717,351 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | LIABILITIES | | | Clearing Cost and Administrative Fees Payable
Accrued Expenses | \$
10,002
34,891 | | TOTAL LIABILITIES | 44,893 | | STOCKHOLDER'S EQUITY | | | Common Stock (Note ) | 0.01 | | Additional Paid-In Capital (Note ) | 956,510 | | Accumulated Deficit | (284,052) | | Total Stockholder's Equity | 672,458 | | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | \$
717,351 | {6}------------------------------------------------ #### **1. Organization** Beacon Securities US Limited ("the Company") was incorporated in Ontario, Canada on October 19, 2018. The Company is a wholly owned subsidiary of Beacon Securities Limited ("the Parent"). The Company is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company computes its regulatory net capital under the basic method of Securities and Exchange Commission ("SEC") Rule 15c3-1. The Company acts as a broker-dealer and is exempt from SEC Rule 15c3-3 under paragraph k (2) (ii) as the Company does not maintain customer accounts and clears all customer transactions on a fully disclosed basis with a clearing firm. Its registered office is as follows: 66 Wellington Street West, Suite 4050 Toronto, Ontario, M5K 1H1 Canada #### **2. Summary of Significant Accounting Policies** #### **Basis of Presentation** The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and presented in U.S. dollars. The preparation of the financial statement in conformity with US 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. #### **Cash** Cash consists of cash in banks and clearing firm. The bank account is held in a Canadian CDIC member institution. #### **Income Taxes** The Company uses the liability method in providing for income taxes on all transactions that have been recognized in the financial statement. The liability method requires that deferred taxes be adjusted to reflect the enacted tax rates at which future taxable amounts are anticipated to be settled or realized. The effects of tax rate changes on future deferred tax liabilities and deferred tax assets, as well as other changes in income tax laws, are recognized in net loss in the period such change occurs. The measurement of a deferred tax asset is adjusted by a valuation allowance, if necessary, to recognize tax benefits only to the extent that, based on available evidence, it is more likely than not that they will be realized. No deferred tax asset has been recognized as the Company does not have sufficient taxable profits available against which the deductible temporary differences can be utilized. The Company has not yet started generating revenue. #### **3. Member's Equity** The Company has an unlimited number of authorized common stock, of which 1 is issued and outstanding. For the period ended December 31, 2021, the Company has received a total of \$956,510 in capital contributions from the Parent with no consideration provided in return. {7}------------------------------------------------ #### **4. Expense Sharing Agreement** On November 11, 2020 the Company and the Parent entered into an Administrative Services Agreement (the "Expense Sharing Agreement"). In accordance with the Expense Sharing Agreement, the Company reimburses the Parent, on a monthly basis, for a proportional share of salaries and related expenses of personnel employed by the Parent who provide services to the Company. The Company has reimbursed the Parent \$71,032 of which \$1,272 is included as Due from Parent on the accompanying statement of financial condition. #### **5. Income Taxes** The Company is a corporation incorporated, under the laws of the Province of Ontario and accounts for income taxes in accordance with ASC 740. Deferred income tax assets and liabilities are computed as the difference between the financial statement and tax bases of assets and liabilities based on presently enacted tax laws and rates. Valuation allowances are established to reduce deferred tax assets when it is deemed more likely than not that such assets will not be realized. As of December 31, 2021, the Company had a deferred tax asset, primarily related to its net operating carryforward losses, of approximately \$284,361 and has recorded a full valuation allowance. The net operating losses will begin to expire in the following manner. | December 31, 2038 | \$
57 | |-------------------|--------------| | December 31, 2039 | \$
15,425 | | December 31, 2040 | \$
57,425 | | December 31, 2041 | \$ 211,411 | Uncertain tax positions are recorded in accordance with Accounting Standards Codification (ASC) 740, Accounting for Income Taxes, on the basis of a two-step process, whereby (1) the Company determines whether it is more likely than not the tax positions would be sustained on the basis of the technical merits of the position taken and (2) for those tax positions that meet the more-likely-than not recognition threshold, the Company would recognize the largest amount of tax benefit that is more than 50% likely to be realized upon the ultimate settlement with the related tax authority. The Company's policy is to record interest and penalties associated with uncertain tax positions as a component of general and administrative expenses. As of December 31, 2021, the Company has not recorded any uncertain tax positions or interest and penalties. #### **6. Clearing deposit and due from clearing broker** The statement of financial condition includes a clearing deposit of \$125,007 that the Company maintains with its clearing broker. Due from clearing broker represents proprietary trading account, net of administrative fees, clearance and execution costs, related to U.S. equity trading activity. For the period ended December 31, 2021, the entity did not engage in any trading activities. #### **7. Net Capital Requirements** The Company is subject to the SEC Uniform Net Capital Rule ("Rule 15c3-1") of the Securities Exchange Act of 1934, which requires the maintenance of minimum net capital equal to the greater of \$250,000 and the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 8 to 1 for the first year and then 15 to 1 thereafter. At December 31, 2021, the Company had net capital of \$664,344 which exceeded the required net capital minimum of \$250,000 by \$414,344. At December 31, 2021, the ratio of aggregate indebtedness to net capital was .07 to 1. {8}------------------------------------------------ #### **8. Commitments and Contingencies** The Company's customers' securities transactions are introduced on a fully-disclosed basis to its clearing broker. The clearing broker carries all of the customers accounts and is responsible for collection and payment of funds and receipt and delivery of securities relative to customer transactions. These transactions may expose the Company to off-balance-sheet risk, wherein the clearing broker may charge the Company for any losses it incurs in the event that customers may be unable to fulfill their contractual commitments and margin requirements are not sufficient to fully cover losses. The Company has the right to pursue collection or performance from the counterparts who do not perform under their contractual obligations. For the period from November 11, 2020 to December 31, 2021, the Company did not have any customers. #### **9. Subsequent Events** The Company has evaluated subsequent events through the date of issuance of these financial statements. Based on this evaluation, the Company has determined that no events have occurred that impact or require disclosure in these financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.