# BENJAMIN SECURITIES, INC. X-17A-5 (2024-09-30) — Broker-dealer annual report
- Company: BENJAMIN SECURITIES, INC.
- Form: X-17A-5
- Filed: 2024-09-30
- Period: 2024-06-30
- Accession: 0002013816-24-000064
- CIK: 278306
- File #: 8-23518
- Type: Broker-dealer
- Material weakness: No
- Auditor: LMHS, P.C.
- Auditor location: Norwell, MA
- Contact: Ilina Stamova
- Phone: 212-668-8700
- Email: istamova@acisecure.com
- Website: acisecure.com
- Signed by: William Baker (CCO)
Original filing: https://www.sec.gov/Archives/edgar/data/278306/000201381624000064/benjaminpublicaudit.pdf
---
{0}------------------------------------------------
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
> ANNUAL REPORTS FORM X-17A-5
OMB APPROVAI OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12
sec file number
PART III
8-23518
FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 AND ENDING 06/30/24 filing for the period beginning 07/01/23 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: Benjamin Securities, Inc. TYPE OF REGISTRANT (check all applicable boxes): ■ Broker-dealer Security-based swap dealer □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 3 West Garden Street, Suite 407 (No. and Street) Pensacola 32502 ﻠ (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Ilina Stamova (212) 668-8700 istamova@acisecure.com (Name) (Area Code - Telephone Number) (Email Address) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* LMHS, P.C. (Name – if individual, state last, first, and middle name) 80 Washington Street, Building S Norwell 02061 MA (Address) (City) (State) (Zip Code) 02/24/2009 3373 (Date of Registration with PCAOB)(if applicable) (PCAOB Registration Number, if applicable) 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.
{1}------------------------------------------------
# OATH OR AFFIRMATION
| William Baker
swear (or affirm) that, to the best of my knowledge and belief, the | | | | | | |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|--|--|
| tinancial report pertaining to the firm of Benjamin Securities, INC.
as and the commission as of as for
6/30 | | | | | | |
| , 2 024___ 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: | | | | | | |
| litle: | | | | | | |
| CCO | | | | | | |
| | | | | | | |
| Motary 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 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. | | | | | | |
| LJ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | | | | | | |
| പ (f) Statement of changes in liabilities subordinated to claims of creditors.
ا | | | | | | |
| (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. | | | | | | |
| L (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. | | | | | | |
| പ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. | | | | | | |
| പ (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. | | | | | | |
| പ (o) Reconciliations, including apropriate 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 subsidiated in the statement of financial condition. | | | | | | |
| (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.18a-7, as applicable. | | | | | | |
| പ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | | | | |
| ال (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 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. | | | | | | |
| പ (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. | | | | | | |
| പ (y) Report describing any material inadequacies 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 reavest confidential treatment of retain nortions of this filing see 17 CER 240 18x, 7dV2) ac | | | | | | |
applicable.
{2}------------------------------------------------
**STATEMENT OF FINANCIAL CONDITION AS OF JUNE 30, 2024 AND REPORT OF 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}------------------------------------------------
# **BENJAMIN SECURITIES, INC. TABLE OF CONTENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2024**
| Report of Independent Registered Public Accounting Firm | |
|---------------------------------------------------------|-----|
| Statement of Financial Condition | 2 |
| Notes to Financial Statement | 3-6 |
{4}------------------------------------------------
# *Report of Independent Registered Public Accounting Firm*
To The Board of Directors and Stockholder Moors & Cabot, Inc. Boston, Massachusetts
# *Opinion on the Financial Statements*
We have audited the accompanying statement of financial condition of Moors & Cabot, Inc. as of June 30, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Moors & Cabot, Inc. as of June 30, 2024, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
# *Basis for Opinion*
These financial statements are the responsibility of the entity's management. Our responsibility is to express an opinion on the entity's financial statements 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 Moors & Cabot, Inc. 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. Moors & Cabot, Inc. 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 entity'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 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.
# LMHS, P.C.
LMHS, P.C.
We have served as Moors & Cabot, Inc.'s auditor since 2006.
Norwell, Massachusetts
September 27, 2024
{5}------------------------------------------------
## **STATEMENT OF FINANCIAL CONDITION AS OF JUNE 30, 2024**
| ASSETS | |
|----------------------------------------------------------------------------------------|-----------------|
| Cash and cash equivalents | \$
2,561,622 |
| Accounts receivable | 2,345,134 |
| Due from clearing brokers | 860,951 |
| Other assets | 100,734 |
| Fixed Assets | 5,236 |
| Securities not readily marketable | 447 |
| Total assets | \$
5,874,124 |
| | |
| LIABILITIES AND STOCKHOLDER'S EQUITY | |
| Liabilities: | |
| Accrued commissions payable | \$
2,656,644 |
| Accounts payable | 956,255 |
| Accrued taxes payable | 377,370 |
| Right of use liability | 67,500 |
| Total liabilities | \$
4,057,769 |
| | |
| Stockholder's equity | |
| Common stock, no par value, 200 shares
authorized, 10 shares issued and outstanding | \$
500 |
| Retained earnings | 1,815,855 |
| | |
| Total stockholder's equity | 1,816,355 |
| Total liabilities and stockholder's equity | \$
5,874,124 |
The accompanying notes are an integral part of this statement.
{6}------------------------------------------------
# **NOTES TO FINANCIAL STATEMENT**
# **JUNE 30, 2024**
## **1. Organization and Nature of Business**
Benjamin Securities, Inc. (the "Company"), incorporated under the laws of the State of New York, is a broker-dealer and investment advisor registered with the US Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company does not clear trades or carry customer accounts. The Company has entered into clearing agreements with unaffiliated registered broker-dealers (the "clearing brokers") that are members of the New York Stock Exchange and other national securities exchanges to provide these services. The clearing brokers are responsible for customer billing, recordkeeping, custody of securities and securities clearance on a fully disclosed basis.
The Company's activities as an introducing broker consist of accepting customer orders for equity and fixed income securities that are executed and processed by the clearing broker.
In June 2022, the Company was approved by FINRA to engage in the private placement of securities and investment advisory services.
#### **2. Significant Accounting Policies**
#### **Basis of accounting**
The financial statement is prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP).
#### **Use of estimates**
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, 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.
#### **Cash and Cash equivalents**
The Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months that are not held for sale in the ordinary course of business.
#### **Revenue recognition**
The Company complies with ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. 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. The new revenue recognition guidance does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts.
#### *Significant Judgement*
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.
#### *Advisory fees*
Advisory fees are earned for providing general investor-related advice and are earned, in accordance with the terms of their respective contracts, only when performance obligations have been fully met.
#### *Corporate Advisory Fees*
The Company offers corporate advisory services, consulting, and investment banking. The firm earns revenues from fees paid by the corporate customers for these services, as well as underwriting fees and selling concessions. The fees are earned when the performance obligations of the engagement are fulfilled by the Company.
#### *Commission Revenue and Related Clearing Expenses*
Commissions for brokering securities transaction, and related clearing expenses are recorded when earned, on a trade date basis. The company records a receivable from the clearing broker on the trade date.
{7}------------------------------------------------
# **NOTES TO FINANCIAL STATEMENT**
**JUNE 30, 2024**
## **2. Significant Accounting Policies (continued)**
#### **Revenue recognition (continued)**
#### *Other revenue*
Other revenue includes interest and dividend income, postage expense and trading gains and losses. Postage fee reimbursements are recognized as they are incurred.
## *Disaggregation of Revenue*
All of the Company's revenues for the year ended June 30, 2024 have been disaggregated on the Statement of Income.
#### *Receivables and Contract Balances*
Receivables arise when the Company has an unconditional right to receive payment under a contract with a customer and are derecognized when the cash is received. The receivable balances as of June 30, 2024 were \$2,345,134.
Contract assets arise when the revenue associated with the contract is recognized prior to the Company's unconditional right to receive payment under a contract with a customer (i.e., unbilled receivable) and are derecognized when either it becomes a receivable or the cash is received. Contract assets are reported in the Statement of Financial Condition. As of July 1, 2023 and as of June 30, 2024, contract asset balances were \$0.
Contract liabilities arise when customers remit contractual cash payments in advance of the Company satisfying its performance obligations under the contract and are derecognized when the revenue associated with the contract is recognized when the performance obligation is satisfied. As of July 1, 2023 and as of June 30, 2024, there were no contract liabilities.
#### **3. Deposit with clearing brokers**
Deposits with clearing brokers consist of deposits of cash or other short term securities held by other clearing organizations or exchanges. The carrying amounts approximate their fair value due to their short-term nature. This financial instrument generally has no stated maturities or has short-term maturities and carries interest rates that approximate market rates.
#### **4. Concentration of Credit Risk**
# **Cash**
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 exposure to the Company is solely dependent upon daily bank balances and the strength of the financial institution. The Company has not incurred any losses on this account. As of June 30, 2024 the amount in excess of the FDIC limit was \$2,311,622.
# **5. Fair Value of Financial Instruments**
The Company complies with FASB ASC 820 "Fair Value Measurements and Disclosures," for assets and liabilities measured at fair value on a recurring basis. ASC 820 accomplishes the following key objectives:
Defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction Establishes a three-level hierarchy (the "Valuation Hierarchy") for fair value measurements;
Requires consideration of the Company's creditworthiness when valuing liabilities; and
Expands disclosures about instruments measured at fair value.
The Valuation Hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement
The three levels of the Valuation Hierarchy and the distribution of the Company's financial assets within it are as follows:
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 – inputs to the valuation methodology included quoted prices for similar assets and liabilities in active markets, and
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
{8}------------------------------------------------
# **NOTES TO FINANCIAL STATEMENT**
# **JUNE 30, 2024**
#### **5. Fair Value of Financial Instruments (continued)**
A financial instrument's level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes "observable" requires significant judgment by the Company. The Company considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The following is a summary of the financial assets measured at fair value as of June 30, 2024:
| Description | Level 1 | Level 2 | Level 3 |
|-------------------|------------|---------|---------|
| Money Market Fund | 493,282 \$ | ‐ \$ | ‐ \$ |
Financial instruments are carried at market value on the Statement of Financial Condition. These instruments include cash and There were no transfers between Level measurements during the period ended June 30, 2024. There were no other financial assets or liabilities measured at fair value under ASC 820 as of June 30, 2024.
#### **6. Commitments: Operating Lease**
In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018- 10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The standard established a right-of-use model ("ROU") that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.
During the year ended June 30, 2024, the Company obtained right-of-use assets of \$67,500 from recording of the lease liability.
The Company entered into a lease agreement for office space in New York City which commenced on April 1, 2024 and expires on March 31, 2029. The lease is secured by a \$1500 deposit held by the landlord, which is included in the other assets on the statement of financial condition.
## **7. Income taxes**
The Company is taxed under the provisions of Subchapter C of the Internal Revenue Code. The amount of current and deferred taxes payable is recognized as of the date of the financial statements, utilizing currently enacted tax laws and rates. Deferred tax expenses or benefits are recognized in the financial statements for the changes in deferred tax liabilities or assets between years. The tax years 2023, 2022 and 2021 remain open to examination by the major taxing jurisdictions to which the entity is subject.
The Company accounts for uncertainties in income taxes under the provisions of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) ("Topic") 740-10-05, Accounting for Uncertainty in Income Taxes. The Topic clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. The Topic prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Topic provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.
As of June 30, 2024, the Company had accrued tax liability in the amount of \$377,370.
## **8. Marketing**
The firm expended a significant amount to obtain customers to participate in its capital markets program, including incentives and bonuses. These expenses are expected to continue as long as the capital markets program remains feasible.
#### **9. Financial Instruments with Off-Balance Sheet Risk**
In the normal course of business, the Company's customer activities involve the execution and settlement of various customer securities transactions. The activities may expose the Company to off-balance-sheet risk in the event the customer or the other broker is unable to fulfill its contracted obligations and the Company has to purchase or sell the financial instrument underlying the contract at a loss. The Company does not carry the accounts of their customers and does not process or safekeep customer funds or securities, and is therefore exempt from rule 15c3-3 of the Securities and Exchange Commission.
{9}------------------------------------------------
## **NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED JUNE 30, 2024**
#### **10. Net Capital Requirement**
The Company is subject to the Securities and Exchange Commissions 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, not to exceed 15 to 1. The Company's aggregate indebtedness to net capital ratio was 2.65 to 1. At June 30, 2024, the Company had net capital of \$1,566,764, which was \$1,351,331 in excess of its required net capital of \$215,433.
#### **11. Subsequent Events**
The Company has evaluated events subsequent to the balance sheet date for items requiring recording or disclosure in the financial statement. The evaluation was performed through the report date, the date the financial statement was to be issued.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.