# AREAM ADVISORS LLC X-17A-5 (2024-03-28) — Broker-dealer annual report - Company: AREAM ADVISORS LLC - Form: X-17A-5 - Filed: 2024-03-28 - Period: 2023-12-31 - Accession: 0001911840-24-000003 - CIK: 1911840 - File #: 8-70889 - Type: Broker-dealer - Material weakness: No - Auditor: David Lundgren and Company - Auditor location: Olathe, KS - Contact: Marie Katz - Phone: 917-733-6503 - Email: mkatz@compliance-risk.com - Website: compliance-risk.com - Signed by: Marie Katz (President) Original filing: https://www.sec.gov/Archives/edgar/data/1911840/000191184024000003/Aream2023Public.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 ## **ANNUAL REPORTS FORM X-17A-5 PART** Ill | | SEC FI LE NUMBER | | |--|------------------|--| **(PCAOB R,g;~raUoa Nombe,, ;f apphca bleJ** I | | FACING PAGE | | | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-------------------------------|-----------------------------------------|--|--|--|--|--| | Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
FILING FOR THE PERIOD BEGINNING | __ | 0_5_/_0_1_/2_0_2_3_AND ENDING | __
1 _2/_3_1_/2_0_2_3_ | | | | | | | | MM/DD/YY | | MM/DD/VY | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | | | __
NAME oF FIRM: | A_re_a_m_A_d_v_is_o_r_s_L_L_C | | ____________
_ | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
GJ Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | □ Security-based swap dealer | | □ Major security-based swap participant | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | | | 535 Mission Street - | Office 1720 | | | | | | | | | | (No. and Street) | | | | | | | | | San Francisco | CA | | 94105 | | | | | | | (City) | (State) | | (Zip Code) | | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | | Marie Katz | (917) 733-6503 | | mkatz@compliance-risk.com | | | | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | | | David Lundgren and Company | | | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | | | 505 N. Murlen Road | Olathe | | KS
66062 | | | | | | | (Address) | (City) | | (State)
(Zip Code) | | | | | | | 01/05/2015 | 6075 | | | | | | | | \* Claims for exemption from the requirement that the annual reports be covered by the 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-S(e)(l)(ii), if applicable. l" of R,g;svat;oa wnh PCAOB)(;f appHcableJ **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 0MB control number.** **FOR OFFICIAL USE ONLY** {1}------------------------------------------------ # Aream Advisors, LLC Financial Statement and Report of Independent Registered Public Accounting Firm Pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 For the Period May 1, 2023 to December 31, 2023 {2}------------------------------------------------ | | Page(s) | |---------------------------------------------------------|---------| | Letter of Oath or Affirmation | | | Report of Independent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | 2 | | Notes to the Financial Statement | 3-6 | {3}------------------------------------------------ #### **OATH OR AFFIRMATION** I, Marie Katz swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Aream Advisors LLC as of 12/31 2~ 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. #### **This filing\*\* contains (check all applicable boxes):** - ~ (a) Statement of financial condition. - ~ (b) Notes to consolidated statement of financial condition. - D (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 (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (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. - D (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a4, as applicable. - D (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-1, 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. - D (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. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (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. - D (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. - D (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. - D (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. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (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). D (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. Sign~ ~ ---~ ~ Title: President /8:\ Notary Public - State of Florida **\\"~~fjj)** Commission # HH **453788 My** Comm. Expires Jan 1, 2028 {4}------------------------------------------------ #### **DAVID** LUNDGREN & **COMPANY** CERTIFIED PUBLIC ACCOUNTANTS, CHARTERED 505 NORTH MUR·LEN ROAD OLATHE, **KANSAS 66062** DAVID 8 . L UNDGREN, **MBA,** CPA TELEPHONE (913) 782-9530 FACSIMILE (91 3) 782-9564 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members of Aream Advisors, LLC, #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Aream Advisors, LLC. as of December 31 , 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Aream Advisors, 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 Aream Advisors, LLC management. Our responsibility is to express an opinion on Aream Advisors, 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 Aream Advisors, 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 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. We have served as Aream Advisors, LLC's auditor since 2023. Olathe, Kansas March 27, 2024 {5}------------------------------------------------ #### **AREAM ADVISORS, LLC STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2023** #### **STATEMENT OF FINANCIAL CONDITION** | Assets | | |----------------------------------------------------------------------|---------------------| | Cash | \$
1,476,884 | | Receivables from non-customers | \$
1,181
,753 | | Other assets | \$
87,152 | | Total Assets | \$
2,745,788 | | Liabilities and Members' Equity
Payables to Broker Dealers, Other | \$
15,017 | | Accounts payable and other accrued expenses | \$
22,943 | | Total Liabilities | \$
37,960 | | Members' Equity | \$
2,707,829 | | Total Liabilities and Members' Equity | \$
2,745,788 | **The accompanying notes are an integral part of these financial statements.** {6}------------------------------------------------ #### **1. Nature of Business** Aream Advisors, LLC, (the "Company"), a Limited Liability Company, is a broker/dealer registered with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority ("FINRA"). The Company engages in the following types of business: private placement of securities, mergers & acquisitions and the chaperoning of foreign broker-dealers pursuant to Rule 1 Sa-6 in which the foreign broker-dealer's business under 1 Sa-6 is limited to private placements of securities. The Company has a minimum net capital of \$5,000. The Company does not claim an exemption from SEA Rule 15c3-3, in reliance on footnote 7 4 to SEC Release 34-70073. The Firm does not, (1) directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (2) does not carry accounts of or for customers and (3) does not carry PAB accounts. ### **2. Summary of Significant Accounting Policies** The Company follows accounting principles generally accepted in the United States of America ("GAAP") as established by the Financial Accounting Standards Board ("FASB") to ensure consistent reporting of financial condition, results of operations, and cash flows. #### **Management Estimates and Assumptions** The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Future events and their effects cannot be predicted with certainty: accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. #### **Revenue Recognition** FASB Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers is a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The Company recognizes revenue under ASC 606. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. #### **See Report of Independent Registered Public Accounting Firm.** {7}------------------------------------------------ #### **Significant Judgments** The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. #### **Cash** The Company maintains cash in bank accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash. ## **Accounts Receivable and Allowances for Uncollectible Accounts** There were no accounts receivable as of December 31 , 2023. Accounts receivable are reported net of any estimated allowances for uncollectible accounts and contractual adjustments. All receivables are uncollateralized. To provide for receivables that could become uncollectible in the future, the Company may establish an allowance for uncollectible accounts to reduce the carrying amount of such receivables to their estimated net realizable value. The allowance for uncollectible accounts is based upon management's assessment of historical and expected net collections, business and economic conditions, and other collection indicators. No allowance was deemed necessary by management as of December 31 , 2023. #### **Financial Instruments - Credit Losses** The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with FASB ASC 326-20, Financial Instruments - Credit Losses. FASB 326-20 requires the Company to estimate expected credit losses over the life of its financial assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the balance sheet that adjusts the asset's amortized cost basis. Changes in the allowance for credit losses are reported in credit loss expense, if applicable. The Company estimates expected credit losses over the life of the financial assets as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. #### **Related Parties** The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. {8}------------------------------------------------ #### **Income Taxes** The entity is a limited liability company(LLC), it is taxed as a C corporation for US federal and state income tax purposes, . A C corporation is recognized as a separate taxpaying entity, it conducts business and realizes net income or loss as a separate entity. The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. #### **Leases** The Company recognized and measured its leases in accordance with FASB ASC 842, Leases. The Company has elected, for all underlying classes of assets, to not recognize right of use assets and lease liabilities for short-term leases of less than 12 months at lease commencement, which do not include an option to renew or purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes lease cost assigned with our short-term leases on a straight line basis over the lease term. #### **3. Financial Instruments with Off-Balance Sheet Risk and Contingencies** The Company may engage in various corporate financing and investment banking activities in which counterparties primarily include broker-dealer, banks and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of credit 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, accounts receivable, accounts payable and other accrued expenses are carried at amounts that are approximate fair value due to the short-term nature of those instruments. Due to the nature of the industry, revenue is typically non-recurring. The ongoing operation of the Company is economically dependent on its ability to enter into contracts with new customers. #### **4. Capital Requirements** As a registered broker-dealer, Aream Advisors, LLC 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. The Company follows the alternative method of computing net capital under Rule 15c3- 1 which requires that the Company must maintain minimum net capital, as defined, equal to the greater of \$5,000 and requires that the ratio of aggregate indebtedness to net capital, as defined shall not exceed 800%. At December 31 , 2023, net capital of \$2,620,677 exceeded the required net capital minimum of \$5,000 by \$2,615,677. Aggregated indebtedness to net capital was 145% for 2023. #### **See Report of Independent Registered Public Accounting Firm.** {9}------------------------------------------------ ## **5. Commitments and Contingencies** As of December 31, 2023, the Company had no commitments or contingencies that required disclosure. ## **6. Subsequent Events** The Company has evaluated and noted no events or transactions that have occurred after December 31, 2023 through the date that the financial statements were issued, that would require recognition or disclosure in the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.