# DML SECURITIES LLC X-17A-5 (2023-02-15) — Broker-dealer annual report - Company: DML SECURITIES LLC - Form: X-17A-5 - Filed: 2023-02-15 - Period: 2022-12-31 - Accession: 0001876511-23-000003 - CIK: 1876511 - File #: 8-70767 - Type: Broker-dealer - Material weakness: No - Auditor: Sanville & Company LLC - Auditor location: Abington, PA - Contact: Patrick O'Shea - Phone: 804-385-4863 - Signed by: Patrick O'Shea (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1876511/000187651123000003/dmlsecllc22public.pdf --- {0}------------------------------------------------ # DML SECURITIES LLC STATEMENT OF FINANCIAL CONDITION (WITH REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THEREON) FOR THE PERIOD JUNE 1, 2022 THROUGH DECEMBER 31, 2022 {1}------------------------------------------------ ## **CONTENTS** | | PAGE | |------------------------------------------------------------|------| | Facing Page
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Oath or Affirmation | | | Report
of Independent Registered Public Accounting Firm | 2-3 | | Statement of Financial Condition | 4 | Notes to Financial Statement 5 – 8 {2}------------------------------------------------ #### UNITED STATES #### SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | | OMB APPROVAL | | |--------------------------|---------------|--| | OMB Number: | 3235-0123 | | | Expires: | Oct. 31. 2023 | | | Estimated average burden | | | | hours per response | 12.00 | | # ANNUAL REPORTS FORM X-17A-5 PART III SEC FILE NUMBER 8-70767 FACING PAGE A. REGISTRANT IDENTIFICATION Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | REPORT FOR THE PERIOD BEGINNING 06/01/2022 AND ENDING | | 12/31/2022 | |-------------------------------------------------------|--|------------| | | | | MM/DD/YY MM/DD/YY #### NAME OF FIRM: DML Securities LLC #### TYPE OF REGISTRANT (check all applicable boxes): ### & Broker-dealer Check here if respondent is also an OTC derivatives dealer DSecurity-based swap dealer @Major security-based swap participant #### ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | 38277 Robinsons Drive | | |--|--|-----------------------|--| |--|--|-----------------------|--| | (No. and Street) | | |----------------------------------------------|------------------| | DE | 19971 | | (State) | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | 804-385-4863 | | | (Area Code - Telephone Number) | [I'mail Address) | | B. ACCOUNTANT IDENTIFICATION | | | | | #### INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report® #### Sanville & Company LLC | (Name - if individual, state last, first, middle name) | | | | | |--------------------------------------------------------|----------|---------|------------|--| | 1514 OLD YORK ROAD | ABINGTON | PA | 19001 | | | (Address) | (City) | (State) | (Zip Code) | | #### 09/18/2003 (Date of Registration with PCAOB)(if applicable) (PCAOB Registration Number, if applicable) 169 #### FOR OFFICIAL USE ONLY \* 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. {3}------------------------------------------------ #### OATH OR AFFIRMATION I, Patrick O'Shear Jog affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of DML Degember 21, 2022, is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, Securities LLCUal person, a case may be, has any proprietary interest in any account classified solely as that of a customer. director. d CEO Title: Notary Public applicable boxes): (a) Statentential inancial condition. [2 (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-1, as applicable. - [i) Computation of tangible net worth under 17 CFR 240.18a-2. - [] 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. - [1) 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. - [0] Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, 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. - 8 (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 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). - L (z) Other: \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(c)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {4}------------------------------------------------ ROBERT F. SANVILLE, CPA MICHAEL T. BARANOWSKY, CPA JOHN P. TOWNSEND, CPA NATHANIEL S. HARTGRAVES, CPA *Sanville & Company* CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 1514 OLD YORK ROAD ABINGTON, PA 19001 (215) 884-8460 (215) 884-8686 FAX 325 NORTH SAINT PAUL ST. SUITE 3100 DALLAS, TX 75201 (214) 738-1998 100 WALL STREET 8th FLOOR NEW YORK, NY 10005 (212) 709-9512 #### **Report of Independent Registered Public Accounting Firm** To the Members of DML Securities, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of DML Securities, LLC (the Company) as of December 31, 2022, 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, 2022, 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 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. 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. This is the initial year we have served as the Company's auditor. Dallas, Texas February 6, 2023 {5}------------------------------------------------ # DML SECURITIES LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2022 | ASSETS | | |----------------------------------------|---------------| | Cash | \$
90,509 | | Other assets | 12,242 | | TOTAL ASSETS | \$
102,751 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities | | | Accrued expenses and other liabilities | \$
25,500 | | TOTAL LIABILITIES | 25,500 | | Member's equity | 77,251 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
102,751 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ### NOTE 1 ORGANIZATION AND NATURE OF BUSINESS DML Securities LLC, formally known as DH Capital Securities LLC (the "Company") was incorporated in Delaware on July 6th 2021, and commenced operations on June 23, 2022 as a broker dealer. The Company operates as a brokerdealer pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act") and applicable state securities statutes. The Company is a member of Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation. The Company advises clients in connection with securities transactions made with relation to mergers and acquisitions and private placements. ### NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ### Basis of presentation The Company maintains its books and records on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). Any references to particular accounting topics in US GAAP in the accompanying financial statements are referring to the corresponding accounting topics in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"), which may include guidance that is specifically applicable to nonpublic entities. ### Use of estimates The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates included in the financial statements. ### Income taxes At December 31, 2022, 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 may require. In accordance with ASC 740, *Income Taxes*, the Company evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by tax authorities. Management has analyzed the tax positions taken by the Company, and had concluded that there were no uncertain {7}------------------------------------------------ ### NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) tax positions that would have a material effect on the financial statements as of December 31, 2022. ### Fair value measurement The carrying amounts of the following financial assets and financial liabilities approximate their fair values: accrued expenses and other liabilities, due to their short-term nature. ### Leases Accounting Standards Update, ("ASU") 2016-02, *Leases*, requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application. It was determined that as of June 1, 2022 and during the period ended December 31, 2022, no agreements or arrangements existed that would be classified as a lease under the adopted guidance. ### Credit Loss Considerations In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments -- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the FASB's guidance on the impairment of financial instruments. The ASU adds to U.S. GAAP, an impairment model (known as the current expected credit loss ("CECL") model) that is based on expected losses rather than incurred losses. Under the guidance, the Company recognizes as an allowance, its estimate of lifetime expected credit losses, which the FASB believes will result in more timely recognition of such losses, if any. The ASU is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. Further, the ASU makes targeted changes to the impairment model for available-for-sale debt securities. The CECL standard became effective on January 1, 2020. For financial assets measured at amortized cost (i.e. cash), the Company has concluded that there are no expected credit losses based on the nature or expected life of the financial assets and immaterial historic or expected losses. ### NOTE 3 CASH Cash consists of one account with a major bank which is insured up to \$250,000 by the Federal Deposit Insurance Corporation. {8}------------------------------------------------ ## NOTE 4 RELATED PARTY TRANSACTIONS The Company is in a cost-sharing arrangement with DH Capital LLC, where DH Capital charges the Company for any Company Direct Expenses on a monthly basis. ## NOTE 5 NET CAPITAL REQUIREMENT As a member of FINRA, the Company is subject to the SEC Uniform Net Capital Rule 15c3-1. This Rule 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, and that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to 1. At December 31, 2022, the Company's net capital was \$65,009 which was \$60,009 in excess of its minimum requirement of \$5,000. ## NOTE 6 CONCENTRATION OF CREDIT RISK The Company maintains its cash balance in a single financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risk on cash. # NOTE 7 GUARANTEES FASB ASC 460, *Guarantees,* requires the Company to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying value (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability, or equity security of a guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. The Company has issued no guarantees effective at December 31, 2022 or during the year then ended. {9}------------------------------------------------ ## NOTE 8 CONTINGENCIES In the ordinary course of business, the Company is subject to regulatory examinations, information gathering requests, inquiries, and investigations. As a registered broker/dealer, the Company is subject to regulation by the SEC, FINRA, and state securities regulators. In connection with formal and informal inquiries by those agencies, the Company may receive requests from such regulators. To date, there are no significant financial contingencies resulting from any regulatory reviews or inquiries. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.