# IGM BROKERAGE, LLC X-17A-5 (2024-03-26) — Broker-dealer annual report - Company: IGM BROKERAGE, LLC - Form: X-17A-5 - Filed: 2024-03-26 - Period: 2023-12-31 - Accession: 0001834994-24-000002 - CIK: 1834994 - File #: 8-70633 - Type: Broker-dealer - Material weakness: No - Auditor: Coglianese, Michael - Auditor location: Bloomingdale, IL - Contact: Matthew M. Reynolds - Phone: 13123994932 - Email: mreynolds@igmbd.com - Website: igmbd.com - Signed by: Matthew M. Reynolds (President, FINOP) Original filing: https://www.sec.gov/Archives/edgar/data/1834994/000183499424000002/IGM2023auditshort.pdf --- {0}------------------------------------------------ UNITED STATES SECURIT]ES AND EXCHANGE COMMISSION Washington, D.C.20549 # ANNUAL REPORTS FORM X-17A-5 PART III OMB Number:3235-0123 Expires; Nov. 30. 2026 Estimated average burden irours per response: ,2 > SEC FILE NUMBER 8-70633 FACING PAGE lnformation Required Pursuant to Rules 17a-5, Lta-72,and 18a-7 under the securities Exchange Act of 1934 FTLTNG FoR rHE pERroD BEGTNNTNG 01101123 AND ENDTNG 12131123 MM/DDAY MM/DDAY A. REGISTRANT I DENTIFICATION NAME oF FIRM IGM Brokerage, LLC TYPE OF REGISTRANT icheck ail appticabte boxes): EI Broker-dealer I Security-based swap dealer I Check here if respondent is also an OTC derivatives dealer f Major security-based swap participant ADDRESS oF PRINC|PAL PLACE oF BUSTNESS: (Do not use a p.o. box no.) 484 E. Carmel Dr. , #137 Carmel (No. and Street) IN 46032 tcity) PERSON TO CONTACT WITH REGARD TO THIS FILING (Zip Code) mreynolds@igmbd.com (State) Matthew M. Reynolds 312-399 -4932 (Name) (Area Code - Telephone Number) (Email Address) B. ACCOUNTANT I DENTIFICATION INDEPENDENT PUBLIc ACC0UNTANT whose reports are contained in this filing\* Michael Coglianese CPA, P.C. 125 E. Lake Street, (Name - if individual, state last, first, and middle name) Suite #303 Bloomingdale lL 60108 (Address) (city) 10t20t2009 (State) 3874 (zip Code) (Date of Regritration with pCAO!){if appticable) \_ (PCAOB Registration Number. if applicablei FOR OFFICIAL USE ONii +Claimsforexemptionfromthe,.q,i,.,"ntth,t1friIi\_nL.aireo accountantmustbesupportedbyastatementoffactsandcircumstancesreliedonasthebasisoftheexemption. See17 CFR 240. 17a-5(e)(1)(ii), if appticabte. Persons who are to retpond to the collection ol information contained in this form are not required to respond unless the form dlsplays a currently valid OMB control number. {1}------------------------------------------------ ### OATH OR AFFIRMATION l, Matlhew M Reynotds swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of tcM Brokerage, LLC 12131 ,a12j- ,is true and correct. I further swear (or affirm)that neither the company nor any has any proprietary interest in any account classified solely partner, officer, director, or equivalent person, as the case may be, as that of a customer. Notary Public ### This filing\*\* contains (check all applicable boxes): - = (a) Statement of financial condltion. - a (b) Notes to consolidated statement of financial conditlon. - r(c) Statement of income (ross) or, if there is other comprehensive income the pEriodG) presentJa, i stitehent ot comprehensive income (as defined in S 210.1\_02 of Regulation S\_X) ^\_\_=t- - r (d) Statement of cash flows. - I (e) statement of changes in stockholders' or partners' or sole proprietor,s equity. - I (f) statement of changes in liabilities subordinated to claims of creditors. - I (g) Notes to consolidated financial statements. - I (h) Computationof netcapital under17cFR240.15c3-1 or17 cFR 240.18a-l,asapplicable. - I (i) Computation of tangible net worth under 17 CFR 240.18a-2. - (i) computation for determination of customer reserve requirements pursuant to Exhibit A to j.7 cFR 240.15c3-3. - .t: (k) Computation for determination of security-based swap reserve requirements pursuant to Exh jbit B to 17 cFR 240.15c3-3 or Exhibit A to 17 CFR 240.L8a-4, as applicable. - I {l) computation for Determiration of pAB Requirements under Exhibit A to s 240.15c3-3. - L (m) lnformatlonrelatingtopossessionorcontrol requirementsforcustomersunderlTCFR240.15c3,3. - il (n) lnformationrelatingtopossessionorcontrol requirementsforsecurity-basedswapcustomersunder1TCFR 2a0.15c3-3(p)12) or 11 CFR 240.18a-4, as applicable. - rl (o) Reconciliations, including appropriate explanations, of the FocUS Report with computation of net capital or tangibie net worth under L7 cFR 24o'15c3-1, U cFR 240.18a-1, or 17 CFR 24a.18a-2,as applicable, and the reserve requirements under L7 CFR 240'15c3-3 or 17 CFR 240.L8a-4, as applicable, if materialdifferences exist, or a statement that no material differences exist. - f (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - I iq) oath or affirmation in accordance with L7 CFR 240.17a-5, 17 cFR 240.L7a-12, or 17 CFR Z4o.tga-t,as applicable. - I (r) Compliance report in accordance with L7 CFR 240.17a-5 or 1.7 CFR Z4A.tga-7,as applicable. - . (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lga-7, as applicable. - !! (t) lndependent public accountant's report based on an examination of the statementof financial condition. - ! (u) lndependent public accountant's report based on an examination ofthe financial report or financial statements under L7 CtR240.17a-5, 17 CFR 240\_78a-7, or 17 CFR 240.17a\_12, as applicable. I(v) lndependent public accountant's report based on an examination of certain statements in - CFR 240.17a-5 or 17 CFR 240.t8,a-t, as applicable. the compliance report under 17 - (w) independent publjc accountant's report based on a review of the exemption report under CFR 240.18a-7, as applicable. 17 CFR240.t7a 5 or 17 - r (x) supplemental reports on applying agreed-upon procedures, in accordance with 17 cFR 240.15c3- l,e or I7 cFR240.11a-t2, as applicable. - (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or astatement that no materia inadequacies exist, under rr cFR24o.L7a 12(k). - (z) Other: f - \*\*To request confidentiol treotment ot' certoin portions of this filing, see 17 CFR 240.17o-5(e)(j) or 1/ CFR 24A.1So-7(d)(2), os applicable. Seal Notary public . Slate ol lndiana ^ Marion County My Commission Erpires , as of {2}------------------------------------------------ # IGM BROKERAGE, LLC (A LIMITED LIABILITY COMPAI\TT) FinancialReport Year Ended December 31,2023 With Report of lndependent Registered Public Accounting Flrm {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) 1 . 2 . 0 M JAP RECEION 2011 - 18:49:00 PM IST MET 2017 11:00 PM IS 11: Bloomingdale | Chicago ## Report of Independent Registered Public Accounting Firm To the Members of IGM Brokerage LLC ### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of IGM Brokerage LLC as of December 31, 2023, and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition (site in the manufactures), in thinker statement; in thancial position of IGM Brokerage LLC as of December 31, 2023 in conformity with accounting principles generally accepted in the United States of America ### Basis for Opinion This financial statement is the responsibility of IGM Brokerage LLC's management. Our responsibility is to express an opinion on IGM Brokerage 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 IGM Brokerage LLC in accordance with the U.S. federal ടecurities laws and the applicable rules and regulations of the Securities and Exchange Commission and the РСАОВ. 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 statements. Our audit also included evauating the accounting principles used and significant estimates madelations. On "addit as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for for aur opinion. We have served as IGM Brokerage LLC's auditor since 2023. Bloomingdale, IL March 22, 2024 {4}------------------------------------------------ | Table of Contents
Paqe | | |---------------------------------------------------------|-----| | Report of lndependent Registered public Accounting Firm | 1 | | Financial Statements: | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3-5 | {5}------------------------------------------------ # IGM BROKERAGE, LLC (A LIMITED LIABILITY COMPANY) # STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2023 ### ASSETS | Cash | 开 | 60,736 | |-----------------------|---|---------| | Note receivable | | 10,416 | | Commission receivable | | 154,561 | | Prepaid expenses | | 14.296 | | TOTAL ASSETS | | 240.009 | # LIABILITIES AND MEMBERS' EQUITY | Commissions pavable
Accounts payable and accrued expenses | igh
144,961
5.302 | |--------------------------------------------------------------|-------------------------| | Total Liabilities | 150.263 | | Members' Equity | 89.746 | | TOTAL LIABILITIES AND MEMBERS' F.QUITY | ﺮ
240 000 | The accompanying notes are an integral part of these financial statements and should be read in conjunction herewith. {6}------------------------------------------------ #### IGM BROKERAGE, LLC (A LIMITED LIABILITY COMPANY) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 ### NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS: IGM Brokerage, LLC (the "LLC") was incorporated in September 8, 2020 in the State of North Carolina. The LLC is registered with the U.S. Searnies and Exchange Commission ("SEC"). The L.C. 1978). Cannia. The LCC Is Tegation ("Forection") Corporation ("SPC"). The LLC's Membership Application of Internation of INTER and the scountes in Policial Proitection in the on April 20, 2022. The LLC's primary business activities are private placement of Securities and commission shamp with biter broker dealers. The LLC is also approved as a mutual fund retailer and broker selling variable life insurance on annuities. ### NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: #### Basis of Presentation The financial statements are prepared using the accrual basis of accordance with accounting principles generally accepted in the United States of America ("GAAP"). ### Use of 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 amount of assets and liabilities, and discludes of contingent assets and liabilities at the date of the financial statements and the exported and expenses on onservances de reporting period. Actual results could differ from those estimates. #### Cash Cash consists of funds maintained in a checking account held at financial institutions. #### Revenue Recognition The LLC recognizes revenue in accordance with FASB ASC Topic 606 as services are rendered and the contract identified performance obligations have been satisfied. There were no unsatisfied performance obligations at December 31, 2023. Private Placement Fees: The LLC generates income through the securing of investors to purchase private placements of scurrities, and other financial instruments for portfolio companies and finds. Reverse is generally recognized at a point in time upon closing of the equity raise in which the L.C. eans a percentage, and the amount can be determined. In 2023, the L.C carned revenue of S2,500 through the sale of certain private securities. Commission Sharing Fees: The LLC has agreements with unaffiliated broker-dealers where in the LLC receives a portion of the commissions for the execution of financial products and securities for customers the LLC introduces to said unaffiliated brokerdealers. The LLC is dependent on the broker-dealers it has commission sharing agreements with to provide notice of commissions generated by LLC customers under the commission sharing agreement. Revenue is recognized at a point in time by the U.C on any commission in the period in which it is earned. Revenue from commission sharing totaled \$442,786 in 2023. Wholesaling revenue: The LLC has agreements with unaffiliated financial entities where in the LLC receives commissions on any institutions the LLC introduces that subsequently invests in products of those financial entities. The LLC only introduces these financial entities with institutions, no retail or individual investors. The LLC is dependent on the financial institutions it has wholesaling agreements with to provide notice of commissions generated by LLC customers under the agreement. Revenue is recognized at a point in time by the LLC on any commission in the period in which it is earned. Revenue from wholesaling totalcd \$101.698 in 2023 Other income: The LLC charges its representatives for technology and other direct expenses for registration with the LLC. This is recorded in the financial statements as Other Income. Revenue from other income totaled \$2,510 in 2023. #### Income Taxes The financial statements do not reflect a provision or liability for federal or state income taxes since under the Internal Revenue Code the LLC elected to be taxed as a partnership. Accordingly, the individual member cates of the LCC incone or loss and credits on the member's individual federal tax return. Similar provisions apply for state and localines and resorting. Accordingly, no provision for income taxes is provided in the accompanying financial statements {7}------------------------------------------------ #### IGM BROKERAGE, LLC (A LIMITED LIABILITY COMPANY) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 The LLC has adopted the provisions of FASB ASC Topic 740, Accounting for Uncertainty in Income Taxes ("Uncertain Tox Position"). This acounting guidance prescribes recognition thresholds that must be met before a tax position is recognized in the financial statement and provides guidate on de-recognition, classification interest and period. disclosure, and transition. Under Uncertain Tax Position, an entity may only recognize or continue to recognize tax positions for meet a "more likely than not" threshold. The LLC has cvaluated its tax position as of December 31, 2023, and does not expect any material adjustments to be made. #### NOTE 3 - LEASE ACCOUNTING: In connection with ASC Topic 842 ("ASC Topic 842") Icases are accounted for lease obligations. As of December 2023, there are no leases entered into by the LLC. There is no corresponding recognition of a lease obligation of the statement of financial condition as the I.I.C. does not have an obligation to record a right to record an offscting lease of the Steeling I ease obligation. A portion of the consulting services paid is allocated to rent expense and totaled \$6,000 for the year ended December 31, 2023. #### NOTE 4 - REGULATORY REQUIREMENTS: The LLC is subject to SEC Rule 15-3-1 (the Net Capital Rule), which requires the maintenance of minimum net capital. The Rule prohibits the LLC from engaging in securities transactions at any time the LLC's net capital, as defined by the Rule, is less than S., 000, or if the ratio of aggregate indertess to net capital, both as defined by the Rule provides that equity capital may not be withdrawn, or cash dividends paid, if the resulting net capital ratio exceeds 15 to 1 At December 31, 2023, the LLC has net capital of S65,033 which exceeded the required net capital of \$10,0 1 by \$5,015 and is aggregate indebtedness to ne capital ratio was 231,06%. The LLC is not required to comply with Rule 15c3-3 as the LLC is relying on Footnoe 74 of the SEC Release No 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5. ### NOTE 5 - CONCENTRATIONS OF CREDIT RISK: #### Cash The U.C maintains principally all cash balances in one financial institution which, at times may exceed the amount insured by the Federal Deposit insurance Corporation The L.C. is solely dependent upon daily bank balances and the respective strength of the financial institution. The LLC has not incurred any losses on this account #### Counterparty As a scurities broker, the LLC is engaged (i) in selling securities as an agent for a diverse group of portfolio companies to large individual customers and investors. (ii) referring customers to third part broker-dealers for the exceution of securities trading for commissions and (ii) introducing institutional buyers to financial entities for investment parposs. The that were and a man the portfolio companies, unaffiliated broker-dealers and financial entities ("Controparises")"). that states the Counterparties are obligated to make payment to the thandlum ennities ( contined under the contract As the LLC doss not exceute the transactions above, the LLC must rely on Counterparties to pay commissions as required by the agecement The LLC does not anticipate nonperformance by Counterpartes in the LC's policy is to monitor its counterparty risk and to review, as necessary, the credit standing of each contemary and portiolio LLC with which it conducts business #### NOTE 6 - INDEMNIFICATIONS: In the normal course of its business the LLC indemnities and guarantees cortain service providers against specified potential losses in connection with their acting as an agent of, or providing services to, the U.C. The maximum potential armant of financ payments that the LLC could be required to make under these indemnifications cannot be estimated. However, the LC Helees that it is unlikely it will have to make material payments under these arrangements and has not recorded any contineer liability in the financial statements for these indemnifications {8}------------------------------------------------ #### IGM BROKERAGE, LI.C (A LIMITED LIABILITY COMPANY) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 The LLC provides representations and warrantes to counterparties in connection with a variety of commercial transacions and ocasionally indemnifies them against potential losses caused by the breach of those representations and warrantiss. The L.C. may also provide standard indemnifications to some counterparties to protect them in the event additional taxes are owed or payments. contractual tems and one adverse application of certain as laws. These industinations generally are standard contractual terms and are entered into in the normal course of business. The maximum of fiture payments that the L.L.C could be required to make under these indemnifications cannot be extimated. He b.C. believes that it is unikely it will have to make mater there arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. #### NOTE 7 - RELATED PARTY TRANSACTIONS: Pursuant to a consulting agreement (the "CA") Bristal Lane Group ("BLG") was retained to provide compliance, supervision, and accounting services, as well as a location for business. Bristal ( and I cance a single common unitibiler, For the year ended December 31, 2023, fees charged by Bristal Lane totaled \$59,041. These cryenses have been relieved in the Statement of Operations as Professional Fees. ## NOTE 8 – SUBSEQUENT EVENTS: The I.L.C has evaluated events and transactions subsequent to the financial condition date for items recording or disclosure in the financial statements. The evaluation was performed through the financial statements were available to be issued. Based upon this review, the LLC has deternined that there were no such events of transactions which took place that would have a material impact on its financial statements. #### NOTE 9 - COMMITMENTS AND CONTINGENCIES: The LLC is a member of FINRA and registered with the US Securities and Exchange Commission and multiple state securities regulators. As such the LLC is susceptible to regulatory exams by all these organizations. Additionally, as the LLC reain registed representatives to sell securities to investors on behalf of portfolio companies, the L.C. reading to articles or litigation. The LLC has not identified any matters that will have a material impact on the LLC's financis, #### NOTE 10 - NOTE RECEIVABLE: The U.C entered into a note receivable with one of its registered representatives. This note is a forgivable note with a forgiveness poriod of 24 months. Each month the LLC amortizes 1/24" of the nove. Total amount of the note. Total amortizence world in 2023 was \$25,000, recognized as note amortization in the statement of operations, ನ Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.