# AMERICAN FUNDSTARS FINANCIAL GROUP LLC X-17A-5 (2025-11-25) — Broker-dealer annual report - Company: AMERICAN FUNDSTARS FINANCIAL GROUP LLC - Form: X-17A-5 - Filed: 2025-11-25 - Period: 2025-09-30 - Accession: 0001944360-25-000005 - CIK: 1944360 - File #: 8-70982 - Type: Broker-dealer - Material weakness: No - Auditor: DCPA - Auditor location: Century City, CA - Contact: Ilina Stamova - Phone: 212-668-8700 - Email: istamova@acisecure.com - Website: acisecure.com - Signed by: Fan Feng (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1944360/000194436025000005/amfundsfindalaudit.pdf --- {0}------------------------------------------------ # UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL REPORTS FORM X-17A-5 PART III OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # SEC FILE NUMBER 8-70982 FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | A. REGISTRANT IDENTIFICATION
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | MM/DD/YY
L Security-based swap dealer __ Major security-based swap participant | |-----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 92614 | | | | (Zip Code) | | | | | | 212-668-8700
istamova@acisecure.com | | | | (Area Code - Telephone Number)
(Email Address) | | | | | | | | | | | | | | | | | | 90067 | | 6567 | | (Zip Code) | | | | | | | B. ACCOUNTANT IDENTIFICATION
(Name - if individual, state last, first, and middle name)
CENTURY CITY | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
CA
(State)
(PCAOB Registration Number, if applicable) | \* Claims for exemption from the requirement that the annual reports of an independent public 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. {1}------------------------------------------------ ## OATH OR AFFIRMATION I, FAN FENG \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ financial report pertaining to the firm of AMERICAN FUNDSTARS as of as of 9/30 2 025 \_ 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. | Signature: | | |------------|--| | Title: | | | CEO | | Notary Public This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - □ (c) Statement of income (loss) or, if there is other comprehensive 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. - [ (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-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. - □ (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. - O (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 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - O (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). - O (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. {2}------------------------------------------------ American Fundstars Financial Group LLC dba American Fundstars Statement of Financial Condition as of September 30, 2025 and Report of Independent Registered Public Accounting Firm This report is pursuant to Rule 17a-5(e)(3) under the Securities Exchange Act of 1934 as a Public Document. {3}------------------------------------------------ American Fundstars Financial Group LLC dba American Fundstars Table of Contents | Report of Independent Registered Public Accounting Firm | | |----------------------------------------------------------|-------| | Financial statement:
Statement of Financial Condition | | | Notes to Financial Statement | 3 - 5 | {4}------------------------------------------------ # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DCPA To Those Charged with Governance and the Member of American Financial Group LLC dba American Fundstars: # Opinion on the Financial Statement We have audited the accompanying statement of financial condition of American Fundstars Financial Group LLC dba American Fundstars (the "Company") as of September 30, 2025, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company as of September 30, 2025 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 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. DCPA DCPA We have served as the Company's auditor since 2023. Century City, California November 20, 2025 {5}------------------------------------------------ ### Statement of Financial Condition September 30, 2025 assets | Cash and cash equivalents
Due from Broker
Deposit with clearing firm
Accounts Receivables
Fixed Assets, net
Prepaid Expenses and Other Assets
Investments at Fair Market Value
Right of Use Asset | ക്ക | 419,318
25,592
10,000
114,238
257,554
31,273
189,845
499,189 | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|-----------------------------------------------------------------------------------| | TOTAL ASSETS | ക്ക | 1,547,009 | | LIABILITIES AND MEMBER'S EQUITY | | | | LIABILITIES:
Right of Use Liability
Related Party Payable
Accrued Expenses
Accounts Payable | ക്ക | 502,658
37,946
41,002
30,157 | | TOTAL LIABILITIES | | 611,763 | | MEMBER'S EQUITY | | 935,246 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | ക്ക | 1,547,009 | See Notes to Financial Statement {6}------------------------------------------------ Notes to Financial Statement For the year ended September 30, 2025 ### NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS American Financial Group LLC dba American Fundstars (the "Company") is a Limited Liability Company that was formed in Delaware on June 17, 2021. The Company is a registered broker-dealer with the U.S. Securities and Exchange Commission Industry Requlatory Authority ("FINRA") and the Securities Investor ("SIPC") as of November 28, 2023. The firm operates in Irvine. California and provides investment advisory services. #### NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Basis of Presentation The accompanying firancial statement have been prepared on the accrdance with accordance with accounting principles generally accepted in the United States of America ("GAAP"). Certain accounts in prior years have been reclassified for comparison purposes. There was no effect on income or equity #### Revenue and Expense Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to costomers in an amount that reflects the consideration to which the entitled in exchange for those goods or services The quires an entity to follow a five step model to (a) identify the contract(s) with a ustomer. (b) identify the performance obligations in the transaction price, (d) allocale the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation 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 uncertaintv associated with the variable consideration is resolved. The Company earns advisory fees for continuous on-going management of securities portfolios. Advisory fee income is recognized in the period earned. The Company earns commission income and insurance-related products. Commission income is recognized only to the extent that it is probable a significant reversal will not ocur. The Company does not maintain significant contract o these commissions. #### Fixed Assets Fixed assets are stated at cost, net of accumulated depreciation. Repairs and maintenance to these as incurred; major improvements enhancing the function and or useful life are capitalized. When items are sold or relired, the related opst and accumulated depreciation are removed from the accounts and any gains or recognized. Property and equipment are depreciated over their estimated useful lives ranging from two (2) to ten (10) years by the straight-line method. #### Accounts Receivables The accounts receivable balance consist of Advisor Fees receivables from other stated at face amount with no alowance for doubtul accounts. An allowance for doubtitle necessary because probable uncollectible acounts are immaterial The Company is treated as a disregarded entity for federal in accordance with single member linited liability company rules. All tax effects of the Company's income or lossed through to the Member. Therefore, no provision or liability for Federal Income Taxes is included in these financial statement. #### Use of Estimates The preparation of financial statement and related in conformity with GAAP requires management to make and assumptions that affect the reported anounts of asses and liabilities, and the disclosure of contingent assets and liabilities at the financial statement. and the reported amounts of income and expenses during the reporting period. Accordingly, actual results could differ from those estimates and such differences could be material. #### Investments The Company has adopted FASB ASC 820, Investments -- Debt and Equity Securities. As such, investment held by the Company are classfied as available for sale securities and stated at their market value based on quoted market prices. Realized gains or losses from the sale of investments are computed based on specific identification of historical cost. Unrealized gains or computed based on specific identification of recorded cost, with the change in fair value during the period included in income. #### NOTE 3 - CONCENTRATIONS OF CREDIT RISK #### Cash and cash equivalents The Company maintains principally all cash balances in one financial institution which, at times, may exceed the amount insured by the Federal Deposit Insurance Corporation. The Company is solely dependent upon daily bank balances and the strength of the financal institution. The Company has not incurred any losses on this account. For purposes relating to the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Company also includes money market accounts as cash equivalents; refer to Note 8. {7}------------------------------------------------ Notes to Financial Statement For the year ended September 30, 2025 ### NOTE 4 - INDEMNIFICATIONS In the normal course of its business, the Company indemnities certain service providers against specified potential loses in connection with their acting as an agent of, or providing services to the Company. The maximum potential the Company could be reguired to make under these indentifications cannot be estimated. However, the tris will have to make material payments under these arrangements and recorded any contingent liability in the financial statement for these indemnifications. ### NOTE 5 - NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital, and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 8 to 1, SEC Rule 15:3-1 also provides that capital may not be withdrawn or cash dividends paid if the resulting net capital and aggregate indebtedness change day to day, but on September 30, 2025, the Company had net capital of \$501,529 in excess of its required net capital of \$100,000; and the Company's ratio of aggregate indebtedness to net capital was approximately 0.22 to 1. #### NOTE 6 - EXEMPTION FROM RULE 15c3-3 The Company is exempt from the provisions of Rule 15c3-3(K)(2)(i) under the Securities and Exchange Act of 1934. The Company does not hold customers' cash or securities and, therefore, has no obligations under the Securities Exchange Act of 1934. #### NOTE 7 - SUBSEQUENT EVENTS The Company has evaluated events subsequent to the Statement of Financial Condition date for items requiring or disclosure in the financial statement. The evaluation was performed the financial statement were available to be issued. Based on this review, the Company has determined that there were no events which took place that would have a material impact on its financial statement. #### NOTE 8 - FAIR VALUE MEASUREMENT On January 1. 2009, the Company adopted Fair Value Measurements and Disclosures which defines a framework for measuring fair value, and establishes a fair value hierarchy which proxitizes the inputs to value is the price that would be received to sell an asset or paid to transaction between market participants at the measurement date. A fair value measurement assumes that the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market. Valuation techniques that are consistent with the market, income, or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 - Quoted prices in an active market for identical assets or liabilities; Level 2 - Observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not actived prices whose inputs are observable or whose significant value drivers are observable: Level 3 - Assets and liabilities whose significant value drivers are unobservable The following table presents the Company's fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of | Assets | Level 1 | Level 2 | Level 3 | Total | |-------------------------|---------|---------|---------|---------| | Cash & cash equivalents | | | | | | Money Market Funds | 410,198 | - | - | 410,198 | | Investment | | | | | | Mutual Fund Stocks | 100,475 | - | 1 | 100,475 | | Exchange Traded Funds | 89,370 | - | - | 89.370 | | Total Investments | 189,845 | - | - | 189,845 | | Total | 600,043 | | = | 600,043 | Money Market Funds are classified as cash and are stated at their fair market value based on quoted prices in active markets. These funds typically invest in short-term, hith minimal credit and interest rate risk. The underlying holdings vary and may include CDs, US Treasuries, or other highly liquid instruments. Because Money Market Funds are generally used by the Company as a short-term investment vehicle for cash management purposes Mutual Fund Stocks are classified as available for sale securities and are stated at fair market prices in active markets. These funds may invest in a wide range of equities, and the underlying holdings vary in nature depending on each fund's investment strategy. The investments may consist of equities issued by a single entities, or diversified portfolios spaning various industries. Changes in fair value are recorded in other comprehensive income until such securities are sold or otherwise disposed of. Exchange Traded Funds are classified as available for sale stated at fair market value based on quoted prices in active markets. ETFs may be structured to track spectic masset classes, or investment themes. The underlying holdings vary and may include CDs, US Treasuries, or equity securities across diverse positions. ETFs offer intraday liquidity since they trade on national exchanges, providing the Company with flexibility in managing its investment balances. Unrealized gains and losses in fair value are recorded in other comprehensive income until realized. {8}------------------------------------------------ Notes to Financial Statements For the year ended September 30, 2025 ### NOTE 9 - DUE FROM BROKER As of September 30, 2025, the Company has a bank sweep receivable Due from Broker in the amount of \$25,592, #### NOTE 10 - DEPOSIT WITH CLEARING BROKER The Company has a clearing agreement with Interactive Broker") to carry its account and the accounts of its clients as customers of the Clearing Broker. The Clearing Broker has custody of the Company's cash balances which serve as collateral for any amounts due to the Clearing Broker as well as collateral for securities purcalse on margin. The balance in the deposit account on September 30, 2025 was \$10,000. #### NOTE 11 - LEASE The Company is a lessee under a noncancelable operating lease accounted for in accordance with ASC 842. The lease does no provide the Company or the lessor with any temination or restrictive financial convenants or other significant restrictions. The Company recognizes a right of use ("ROUA") asset and corresponding lease liability at the future lease payments over the lease term. The components of lease cost for the year ended September 30, 2025 are as follows: | Operating lease cost | \$ 125.136 | |----------------------|------------| | Total occupancy | \$ 125.136 | Amounts reported in the Statement of Financial Condition as of September 30, 2025 are as follows: | Operating lease: | | |--------------------|------------| | Right of use asset | \$ 499.189 | | Lease Liability | \$ 502.658 | Maturities of lease liabilites under the noncancelable operating lease as of September 30, 2025 are as follows: | 2025 - 2026 | ക | 212.278 | |-----------------------------------|---|------------| | 2026 - 2027 | | 220,603 | | 2027 - 2028 | | 112.382 | | Total undiscounted lease payments | | \$ 545.263 | | Less imputed interest | | (42,605) | | Total lease liability | | 502.658 | | | | | Other information as of September 30, 2025: The Company used its incremental borrowing rate ("BR") of 0.7083% at the lease commencement date to meaure the IBR relfects the rate of interest the Company would be required to pay, on a collateralized basis, to borrow an amount equal to the lease payments over a similar term and in a similar economic environment. The leas not readily determinable and, therefore, was not used in the present value calculation #### NOTE 12 - FIXED ASSETS Property and equipment are recorded at cost and summarized by major classifications as follows: | Auto | \$ 241,812 | 10 | |-------------------------------|------------|----| | Furniture and fixtures | 90,871 | 5 | | Website | 18,064 | 2 | | | 350,747 | | | Less accumulated depreciation | (93.193) | | | Net furniture and equipment | 257.554 | | Depreciation expense for the period ended September 30, 2025 was \$ 46,609. ### NOTE 13 - SEGMENT REPORTING The Company follows Accounting Standards Undate 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which expands reportable segment disclosures by requiring companies to present, on both an annual and interim basis, significant segment expenses that are reqularly provided to the Chief Operating Decision Maker ("CODM") and are included in each reported measure of a segment's profit or loss. ASU 2023-07 also requires disclosure of the CODM and a description of how the CODM allocates resources to segments and evaluates segment performance. The Company conducts its operations and results as one reportable segment: brokerage services. The Company's CODM is the Chief Executive Officer ("CEO"), who evaluates resources in a manner consistement with how the Company manages its operations and presents its financial information. The business and the accounting policies applicable to the brokerage services segment are consistent with those description of Business" and "Summary of Significant Accounting Polcies" notes. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.