# GQR SECURITIES LLC X-17A-5 (2025-01-07) — Broker-dealer annual report
- Company: GQR SECURITIES LLC
- Form: X-17A-5
- Filed: 2025-01-07
- Period: 2024-09-30
- Accession: 0002013816-25-000001
- CIK: 1769381
- File #: 8-70305
- Type: Broker-dealer
- Material weakness: No
- Auditor: Nawrocki Smith LLP
- Auditor location: Hauppauge, NY
- Contact: Michele Silvestro
- Phone: 212-668-8700
- Email: msilvestro@acisecure.co
- Website: acisecure.co
- Signed by: Gene Reily (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1769381/000201381625000001/gqrpubaudit.pdf
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# UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden ho
# ANNUAL REPORTS FORM X-17A-5 PART III
| urs bet response: | |
|-------------------|--|
| | |
| SEC FILE NUMBER | |
| 8-70305 | |
# FACING PAGE
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
| | filing for the period beginning 10/01/2023
09/30/2024
AND ENDING | | | |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|---------|--------------------------------------------|--|
| | MM/DD/YY | | MM/DD/YY | |
| | A. REGISTRANT IDENTIFICATION | | | |
| NAME OF FIRM: GQR Securities LLC | | | | |
| TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
□ Check here if respondent is also an OTC derivatives dealer | പ Security-based swap dealer | | | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | |
| 500 W Putnam Ave, Suite 400 | | | | |
| | (No. and Street) | | | |
| Greenwich | CT | | 06830 | |
| (City) | (State) | | (Zip Code) | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | |
| Michele Silvestro | (212) 668-8700 | | msilvestro@acisecure.co | |
| (Name) | (Area Code - Telephone Number) | | (Email Address) | |
| | B. ACCOUNTANT IDENTIFICATION | | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | |
| Nawrocki Smith LLP | | | | |
| | (Name - if individual, state last, first, and middle name) | | | |
| 100 Motor Parkway, Suite 580 | Hauppauge | NY | 11788 | |
| (Address) | (City) | (State) | (Zip Code) | |
| 03/04/09 | | 3370 | | |
| (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.
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# OATH OR AFFIRMATION
| ı, Gene Reily | | , swear (or affirm) that, to the best of my knowledge and belief, the | | |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|--|--|
| financial report pertaining to the firm of GQR Securities, LLC
as of as as of
September 30
2024 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:
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 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. | | | |
| | (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-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 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. | | | |
| as applicable. | [x] Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, | | | |
| | [] {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 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.
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# **GQR Securities LLC**
**Statement of Financial Condition**
**As of and for the Year Ended September 30, 2024**
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# **GQR Securities LLC**
As of and for the Year Ended September 30, 2024
# **Contents**
| Report of Independent Registered Public Accounting Firm | 1 |
|---------------------------------------------------------|-------|
| Financial Statement | |
| Statement of Financial Condition | 2 |
| Notes to Financial Statement | 3 - 5 |
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# **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Member of GQR Securities LLC:
# **Opinion on the Financial Statement**
We have audited the accompanying statement of financial condition of GQR Securities LLC (the "Company") as of September 30, 2024, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of GQR Securities LLC as of September 30, 2024 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 U.S. Securities and Exchange Commission ("SEC") 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 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.
We have served as GQR Securities LLC's auditor since 2022.
Hauppauge, New York December 27, 2024
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### Statement of Financial Condition September 30, 2024
#### **ASSETS**
| Cash and cash equivalents
Accounts Receivable
Prepaid expenses and Other Assets | \$
18,892
1,000
253 |
|---------------------------------------------------------------------------------------|------------------------------|
| TOTAL ASSETS | \$
20,145 |
| LIABILITIES AND MEMBER'S EQUITY | |
| LIABILITIES:
Accounts payable and Accrued Expenses | \$
5,604 |
| TOTAL LIABILITIES | 5,604 |
| Member's Equity | |
| TOTAL MEMBER'S EQUITY | 14,541 |
| TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
20,145 |
See accompanying notes to financial statement
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### Notes to Financial Statement As of and for the Year Ended September 30, 2024
#### **1. Organization and Nature of Business**
GQR Securities LLC (the "Company"), incorporated under the laws of the state of Delaware on February 25, 2019. The Company is a broker-dealer registered with the U.S. Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"), effective August 18, 2020. The Company does not clear trades nor carry customer accounts. The Company conducts investment banking activities, specifically private placements and advisory services, and does not take custody of securities.
There is one affiliate, Greenwich Quantitative Research LP. as outlined in the Expense Sharing Agreement with NOTE 3 if this agreement had not existed, the Company's results from operations could look materiality different from the reported results.
#### **2. Summary of 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. Revenue is recognized when earned, while expenses and losses are recognized when incurred.
### **Cash and Cash Equivalents**
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of funds maintained in checking and money market accounts held at financial institutions.
The Company's cash and cash equivalents are held principally at one financial institution and at times may exceed federally insured limits. The Company has placed these funds in a high quality institution in order to minimize risk relating to exceeding insured limits.
#### **Use of Estimates**
The preparation of the financial statement in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statement and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
#### **Revenue Recognition - ASC 606**
The Company recognizes revenue in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606. Fundraising fees are earned for achieving various fundraising objectives. Fundraising fees may be earned based upon a percentage of funds raised and/or a flat fee and may include a retainer, or partial payment, to commence services. Fundraising fees are recorded as revenue as the related performance obligations are satisfied. Advisory fees are earned for providing general investor-related advice outside the fundraising/private placements process and are earned monthly, based upon when advisory services are performed.
#### **3. Related Party**
The Company has entered into an expense sharing arrangement with its affiliate and incurs a monthly allocation of rent, professional fees, and dues & subscriptions from this affiliate. Total costs allocated to the Company from October 1, 2023 through September 30, 2024 were \$47,871. This allocation was determined based upon the square footage needed by the Company to operate and the utilization of employee personnel to effectively manage the activities of the Company. As of September 30, 2024 the intercompany balance owed to the affiliate was \$3,409.55. In accordance with a written expense sharing agreement with the member total costs included:
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Notes to Financial Statement As of and for the Year Ended September 30, 2024
#### **3. Related Party (continued)**
| | 47,871 |
|------------------------|--------|
| Commission Expense | 3,450 |
| Dues and Subscriptions | 597 |
| Rent Expense | 11,991 |
| Professional Fees | 31,833 |
| | |
The Company is currently leasing office space in Greenwich, CT through its affiliate, Greenwich Quantitative Research. During February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)." ASU No. 2016-02 requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make the lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. As of September 30, 2024, the Company does not maintain any leases in excess of a one year term. As such, the Company does not have an obligation to record a right to use asset or an offsetting lease obligation.
#### **4. Indemnifications**
In the normal course of its business, the Company indemnifies and guarantees certain service providers against specified potential losses in connection with their acting as an agent of, or providing services to, the Company. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statement for these indemnifications.
The Company provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statement for these indemnifications.
# **5. Net Capital Requirement**
The Company is subject to the Securities and Exchange Commission Uniform Net Capital 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 800% in the first year of operations, and 1500% in every year thereafter. At September 30, 2024, the Company had net capital of \$13,288 which was \$8,288 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was 42.17%.
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# **GQR Securities LLC**
## Notes to Financial Statement As of and for the Year Ended September 30, 2024
## **6. Income Tax**
The Company has elected to be treated as a partnership for federal and state income tax purposes whereby the tax attributes of the Company pass through to the sole owner. The Company is a part of a group that files a consolidated tax return and would ordinarily be required to present the components of current and deferred tax expense related to its operations. However, in accordance with the adoption of the Financial Accounting Standards Board (FASB) issued ASU 2019-12, the Company is not required to allocate the consolidated amount of current and deferred tax expense related to its operations and as such, no provision for income taxes has been reflected the financial statements.
ASC Topic 740-10, Accounting for uncertainty in income taxes, prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company believes that it has no uncertain tax positions at September 30, 2024 and there have been no accruals for interest and penalties.
Management believes that all of the positions taken on its federal and state income tax returns would more likely than not be sustained upon examination.
### **7. Commitments and Contingencies**
The Company had no commitments or contingent liabilities and had not been named as a defendant in any lawsuit at September 30, 2024, or during the year then ended.
# **8. Subsequent Events**
The Company has evaluated events and transactions that occurred between October 1, 2024 and December 27, 2024, which is the date the financial statements were available to be issued, for possible disclosure and recognition in the financial statements.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.