# EDGAR Filing Document

**Accession Number:** 0001482579
**File Stem:** 0001482579-23-000001
**Filing Date:** 2023-3
**Character Count:** 40317
**Document Hash:** 2f852f94c0589b274eb603e6f3f277e4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001482579-23-000001.hdr.sgml**: 20230331

**ACCESSION NUMBER**: 0001482579-23-000001

**CONFORMED SUBMISSION TYPE**: X-17A-5

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230331

**DATE AS OF CHANGE**: 20230331

**EFFECTIVENESS DATE**: 20230331

**PERIOD START**: 20220101

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CLIENT ONE SECURITIES LLC
- **CENTRAL INDEX KEY:** 0001482579
- **IRS NUMBER:** 271408998
- **STATE OF INCORPORATION:** KS
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-68494
- **FILM NUMBER:** 23785392

**BUSINESS ADDRESS:**
- **STREET 1:** 6330 SPRINT PARKWAY, SUITE 400
- **CITY:** OVERLAND PARK
- **STATE:** KS
- **ZIP:** 66211
- **BUSINESS PHONE:** 913-814-6097

**MAIL ADDRESS:**
- **STREET 1:** 6330 SPRINT PARKWAY, SUITE 400
- **CITY:** OVERLAND PARK
- **STATE:** KS
- **ZIP:** 66211

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CREATIVEONE SECURITIES, LLC
- **DATE OF NAME CHANGE:** 20220405

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CLIENT ONE SECURITIES LLC
- **DATE OF NAME CHANGE:** 20110314

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CLIENT ONE SECURITIES, LLC
- **DATE OF NAME CHANGE:** 20100128

### Attached PDF Documents

**Attachment 1:** `creativeoneaudit2022.pdf`

# 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

# ANNUAL REPORTS

# FORM X-17A-5

# PART III

# SEC FILE NUMBER

# 8-68494

# 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 | 01/01/22 | AND ENDING | 12/31/22 |
| --- | --- | --- | --- |
|  | MM/DD/YY |  | MM/DD/YY |

# A. REGISTRANT IDENTIFICATION

NAME OF FIRM: CreativeOne Securities, LLC

TYPE OF REGISTRANT (check all applicable boxes):

☑ Broker-dealer

☐ Security-based swap dealer

☐ Major security-based swap participant

☐ Check here if respondent is also an OTC derivatives dealer

ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)

6330 Sprint Parkway, Suite 400

| (No. and Street) |  |  |
| --- | --- | --- |
| Overland Park | KS | 66211 |
| (City) | (State) | (Zip Code) |

PERSON TO CONTACT WITH REGARD TO THIS FILING

Susan Hayes

609-642-6593

shayes@pattentraining.com

(Name)

(Area Code - Telephone Number)

(Email Address)

# B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*

Moss Adams LLP

| (Name - if individual, state last, first, and middle name) |  |  |  |
| --- | --- | --- | --- |
| 999 Third Avenue, Suite 2800 | Seattle | WA | 98104 |
| (Address) | (City) | (State) | (Zip Code) |
| 10/16/03 |  | 659 |  |

(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 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-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.

# OATH OR AFFIRMATION

I, Jeff Eisenhauer ____, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of CreativeOne Securities, LLC ____, as of 12/31 ____, 2022 ____, 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.

Sandra K Monical

Notary Public

Signature:

Jeff Eisenhauer

Title:

President & Chief Compliance Officer

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.
☑ (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.
☐ (l) 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.
☐ (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.
☐ (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).
☐ (z) Other: ____

![img-0.jpeg](img-0.jpeg)

**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.

# **CreativeOne Securities, LLC**  
**(Formerly Known as Client One Securities, LLC)**  
**Report Pursuant to Rule 17a-5(d)**  
**Financial Statements and Supplemental Information**  
**For the Year Ended December 31, 2022**

# CreativeOne Securities, LLC

# Table of Contents

December 31, 2022

|  | Page(s) |
| --- | --- |
| Report of Independent Registered Public Accounting Firm | 1 |
| Financial Statements |  |
| Statement of Financial Condition | 2 |
| Statement of Operations | 3 |
| Statement of Changes in Member's Equity | 4 |
| Statement of Cash Flows | 5 |
| Notes to Financial Statements | 6 - 11 |
| Supplemental Information | 12 |
| Schedule I - Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission | 13 |
| Schedule II - Computation for Determination of Reserve Requirements and Information Relating to Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commission | 14 |
| Exemption Report | 15 |
| Report of Independent Registered Public Accounting Firm on Exemption Report | 16 |
| Exemption Report | 17 |

MOSSADAMS

# Report of Independent Registered Public Accounting Firm

CreativeOne Securities, LLC

## *Opinion on the Financial Statements*

We have audited the accompanying statement of financial condition for CreativeOne Securities, LLC (the Company) as of December 31, 2022, the related statements of operations, changes in member's equity, and cash flows for the year then ended, 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 the Company as of December 31, 2022, 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 Company's management. Our responsibility is to express an opinion on the Company'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 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 statements are 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 statements, whether due to error or fraud, and performing procedures to 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.

## *Opinion on the Supplemental Information*

The information in Schedules I & II (the Schedules) has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The information in the Schedules is the responsibility of the Company's management. Our audit procedures include determining whether the information in the Schedules reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the Schedules. In forming our opinion on the information in the Schedules, we evaluated whether the information in the Schedules, including its form and content is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the information in the Schedules is fairly stated in all material respects in relation to the financial statements as a whole.

*Moss Adams LLP*

Overland Park, Kansas March 31, 2023

We have served as the Company's auditor since 2017.

1

# **CreativeOne Securities, LLC**  
 **Statement of Financial Condition**  
 **December 31, 2022**

# Assets

| Cash and cash equivalents | $2,563,940 |
| --- | --- |
| Due from other broker dealers | 1,226,677 |
| Prepaid expenses and other assets | 174,501 |
| Total Assets | $3,965,118 |

# Liabilities and Member's Equity

# Liabilities

| Accounts payable and accrued liabilities | $459,292 |
| --- | --- |
| Commissions payable | 1,275,649 |
| Deferred investment advisory representative renewal fees | 284,901 |
| Total Liabilities | 2,019,842 |

# Member's Equity

|  | 1,945,276 |
| --- | --- |
| Total Liabilities and Member's Equity | $3,965,118 |

The accompanying notes are an integral part of these financial statements

2

# **CreativeOne Securities, LLC**  
 **Statement of Operations**  
 **For the Year Ended December 31, 2022**

# Revenues

| Commission revenue |  |
| --- | --- |
| Sales commissions | $18,137,894 |
| Trailing commissions | 1,891,150 |
| Advisory revenue | 21,366,614 |
| Other revenue | 2,076,551 |
| Interest income | 7,306 |
| Total Revenues | 43,479,515 |

# Expenses

| Commissions and fees paid to reps | 34,916,411 |
| --- | --- |
| Advisory fees | 701,803 |
| Clearing fees | 429,980 |
| Technology and communications | 1,931,215 |
| Regulatory fees and expenses | 318,037 |
| Salaries and other employment costs | 2,195,121 |
| Promotional costs and seminars | 492,044 |
| General and administrative | 787,802 |
| Total Expenses | 41,773,408 |

# Net income

$1,707,102

The accompanying notes are an integral part of these financial statements

3

# **CreativeOne Securities, LLC**  
**Statement of Changes in Member's Equity**  
**For the Year Ended December 31, 2022**

| Balance at December 31, 2021 | $2,038,174 |
| --- | --- |
| Distributions to Member | (1,800,000) |
| Net income | 1,707,102 |
| Balance at December 31, 2022 | $1,945,276 |

The accompanying notes are an integral part of these financial statements

4

# **CreativeOne Securities, LLC**  
 **Statement of Cash Flows**  
 **For the Year Ended December 31, 2022**

| Cash flows from operating activities: |  |
| --- | --- |
| Net income | $1,707,102 |
| Adjustments to reconcile net income to net cash from operating activities: |  |
| Changes in assets and liabilities: |  |
| Decrease in due from other broker dealers | 254,613 |
| Decrease in prepaid expenses and other assets | 62,185 |
| Decrease in accounts payable and accrued liabilities | (30,577) |
| Decrease in commissions payable | (325,396) |
| Increase in deferred fees | 15,674 |
| Net cash provided by operating activities | 1,683,601 |
| Cash flows from financing activities |  |
| Capital distributed to Member | (1,800,000) |
| Net cash flow used in financing activities | (1,800,000) |
| Net decrease in cash and cash equivalents | (116,399) |
| Cash and cash equivalents, beginning of year | 2,680,339 |
| Cash and cash equivalents, end of year | $2,563,940 |

The accompanying notes are an integral part of these financial statements

5

# **CreativeOne Securities, LLC  
Notes to Financial Statements  
December 31, 2022**---

# Note 1 - General and Summary of Significant Accounting Policies

# Nature of Operations and Basis of Presentation

CreativeOne Securities, LLC (formerly known as Client One Securities, LLC, the Company) is a limited liability company organized under the laws of the state of Kansas, with its home office located in Overland Park, Kansas. The Company is a broker-dealer in securities registered with the Securities and Exchange Commission (“SEC”) and is a member of the Financial Industry Regulatory Authority (“FINRA”). The Company operates under SEC Rule 15c3-3(k)(2)(ii), whereby a clearing broker-dealer performs clearing functions for all broker-dealer transactions with customers and brokers and dealers on a fully disclosed basis. The Company also has agreements for clearing functions with other various mutual funds and variable annuity brokers. The Company’s customers are located across the United States. The Company receives commissions on trades that are facilitated through the clearing broker-dealer and other brokers. The accounting and reporting policies of the Company conform to U. S. generally accepted accounting principles and to general practices within the broker-dealer industry.

The Company is registered as an investment advisor with the SEC. As a registered investment advisor, the Company is required to adhere to rules and regulations identified in the U.S. Investment Advisers Act of 1940.

The Company is a wholly owned subsidiary of Creative One Marketing Corporation (the Parent).

# Summary of Significant Accounting Policies

# **(a) 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.

The Company maintains its cash in bank accounts at high credit quality financial institutions. The balances at times may exceed federally insured limits of $250,000.

# **(b) Estimates**

The presentation of financial statements 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 in the financial statements and accompanying notes. Actual results could differ from those estimates.

# **(c) Due from Other Broker Dealers**

Receivables due from the clearing firm and other brokers and dealers are generally collected in full in the month following their accrual. As such, management has not recorded an allowance for credit losses. Receivables from broker dealers were $1,226,677 and $1,481,290 at December 31, 2022 and December 31, 2021, respectively.

6

# **CreativeOne Securities, LLC  
Notes to Financial Statements  
December 31, 2022**---

# **(d) Advertising Costs**

Advertising costs are expensed as incurred. Total advertising costs for the year ended December 31, 2022 were immaterial to the financial statements.

# **(e) Revenue Recognition**

# Significant Judgments

Revenue from contracts with customers includes commission income and fees from asset management services. The recognition and measurement of revenue is based on the assessment of basic contract terms. Significant judgment 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.

# Commission Revenue

Commission revenue represents sales commissions generated by Registered Representatives ('RRs') for their clients' purchases and sales of securities on exchanges and over-the-counter as well as purchases of other investment products. The Company views the selling, distribution and marketing, or any combination thereof, of investment products to such clients as a single performance obligation to the product sponsors. The Company is the principal for commission revenue, as it is responsible for the execution of the clients' purchases and sales and maintains relationships with the product sponsors. RRs assist the Company in performing its obligations. Accordingly, total commission revenues are recorded on a gross basis.

The Company generates two types of commission revenue: sales-based commission revenue that is recognized at the point of sale on the trade date and trailing commission revenue that is recognized over time as earned. Sales-based commission revenue varies by investment product and is based on a percentage of an investment product's current market value at the time of purchase. Trailing commission revenue is generally based on a percentage of the current market value of clients' investment holdings in trail-eligible assets and is recognized over the period during which services, such as ongoing support, are performed. As trailing commission revenue is based on the market value of clients' investment holdings, this variable consideration is constrained until the market value is determinable.

# Advisory Revenue

Advisory revenue represents fees charged to accounts belonging to clients of Investment Advisory Representatives ('IARs') on the Company's corporate and third-party advisory platforms. The Company provides ongoing investment advice and performs administrative services for these accounts. This series of performance obligations transfers control of the services to the client over time as the services are performed. This revenue is recognized ratably over time to match the continued delivery of the performance obligations to the client

7

# **CreativeOne Securities, LLC  
Notes to Financial Statements  
December 31, 2022**---

over the life of the contract. The advisory revenue generated from the Company's corporate and third-party advisory platforms is based on a percentage of the market value of the eligible assets in the clients' advisory accounts. As such, the consideration for this revenue is variable and an estimate of the variable consideration is constrained due to dependence on unpredictable market impacts on clients' portfolio values. The constraint is removed once the portfolio value can be determined. Generally, fees are billed on a monthly or quarterly basis based on each account's asset value at the end of the preceding month or quarter, respectively. Advance payments, if received, are deferred and recognized during the periods for which services are provided.

# *Other Revenue*

Other revenue primarily includes marketing allowances received from certain financial product manufacturers, mainly those who offer alternative investments, such as non-traded real estate investment trusts and business development companies and other miscellaneous revenues. These revenues are not in scope for Topic 606 as they are not generated from contracts with customers. The Company recognized $686,260 for these revenues in 2022.

The Company receives fees from product sponsors, primarily mutual fund and annuity companies, for marketing support and sales force education and training efforts. Compensation for these performance obligations is generally calculated as a fixed fee, or a percentage of the average annual amount of product sponsor assets held in accounts belonging to IAR clients, or as a percentage of new sales, or a combination thereof. As the value of product sponsor assets held in IAR client accounts is susceptible to unpredictable market changes, this revenue includes variable consideration and is constrained until the date that the fees are determinable. The Company is the principal in these arrangements as it is responsible for and determines the level of servicing and marketing support it provides to the product sponsors. The Company's revenues from sponsors were $187,370 for the year ended December 31, 2022. Deferred income from sponsors linked to the Company's annual Sales Summit in March 2023 was $35,000 for the year ended December 31, 2022 and appears in Accounts Payable and Accrued Liabilities on its Statement of Financial Condition.

The Company provides support to its RRs and IARs throughout the year, including fee revenues from training, insurance coverage and payment of regulatory fees, transaction services revenues, and other services. Fee revenues may be generated from registered representatives or their clients. Fee revenues primarily include IRA custodian fees, contract and licensing fees, and other client account fees. In addition, the Company hosts conferences that serve as training, education, sales, and marketing events, for which a fee is charged for attendance. Fee revenues are recognized when the Company satisfies its performance obligations. Recognition varies from point-in-time to over time depending on whether the service is provided once at an identifiable point in time or if the service is provided continually over the contract life. Transaction service revenue primarily includes fees the Company charges to RRs and IARs and their clients for executing certain transactions in brokerage and fee-based advisory accounts. Transaction service revenue is recognized at the point-in-time that a transaction is executed, which is generally the trade date.

The Company charges its RRs and IARs an annual fee which covers initial registration, insurance and training costs. These fees are generally collected in November and December

8

# **CreativeOne Securities, LLC  
Notes to Financial Statements  
December 31, 2022**---

for the following year. The Company recognizes revenue on registration fees and insurance coverage payments made on behalf of its RRs and IARs at the point in time the payments are made, and at an amount equal to the cost of the payments made, resulting in no effect on net income. The remaining fees collected are not identifiable with specific obligations performed and are therefore recognized on a straight-line basis over the coverage period. The Company's total revenues from RR and IAR support fees and transaction services charged to RRs and IARs were $1,202,915 for the year ended December 31, 2022. As of December 31, 2021, the Company had $269,227 of liabilities recorded for deferred RR and IAR renewal fees, all of which were recognized as income in 2022. As of December 31, 2022, the Company had $284,901 of liabilities recorded for deferred RR and IAR renewal fees, which will be recognized as income during 2023.

# Allowance for Credit Losses

The Company has performed an evaluation of the collectability of its receivables. Because of the daily settlement with the Company's counterparties, the amount of unsettled credit exposures is limited to the amount owed for the Company for a very short period of time. The Company has not recorded an allowance for credit losses due to there being no history of losses on those receivables. All receivables from broker-dealers and clearing organizations recorded as of December 31, 2022 and 2021 have been subsequently collected.

# Interest Income

The Company earns interest income from client margin accounts and cash equivalents, net of operating expense. This revenue is not in scope for Topic 606 as it is not generated from contracts with customers.

# **(f) Income Taxes**

The Company and its affiliates are included in the consolidated tax return filed by the Parent. Income taxes are calculated and paid by the members of the Parent. Therefore, no provision or liability for federal income taxes has been included in the financial statements.

# Note 2 - Net Capital Requirement

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, as defined under such provisions. Net capital and the related net capital ratio may fluctuate on a daily basis. At December 31, 2022, the Company had net capital of $1,709,333 and was $1,574,677 in excess of its required net capital of $134,656. The Company's ratio of aggregate indebtedness to net capital was 1.18 to 1.00.

# Note 3 - Related Party Transactions

Effective January 1, 2022, the Company entered into a Shared Services & Expense Agreement (the Agreement) with its Parent whereby the Parent provides administrative support including legal, accounting, human resources, information technology and other services. The Company

9

# **CreativeOne Securities, LLC**  
 **Notes to Financial Statements**  
 **December 31, 2022**---

also rents its facilities from its Parent through the Agreement which expires December 31, 2023. The lease agreement and all of its terms and conditions are between the Parent and its landlord and the Company has no security obligations with regard to the Parent's lease. Therefore, the lease does not require the recording of a net lease asset and lease liability on the Company's balance sheet or have a material impact on the earnings and cash flows as of December 31, 2022. The Company recorded $81,141 of short-term lease expense during 2022.

The financial statements include the following items related to the Agreement:

# **Statement of Financial Condition**

| Accounts payable and accrued liabilities | $25,574 |
| --- | --- |

# **Statement of Operations**

| Technology and communications | $25,000 |
| --- | --- |
| Salaries and other employment costs | 101,789 |
| Promotional costs and seminars | 202,508 |
| General and administrative | 153,590 |

The Company has a sub-advisory agreement with CreativeOne Wealth, LLC ('C1 Wealth', formerly known as Change Path, LLC), an affiliate. Under the Company's sub-advisory agreement with C1 Wealth the Company earned $30,725 in advisory fee income and incurred $204,831 of advisory fee expense for the year ended December 31, 2022. As of December 31, 2022, the Company owed $17,500 to C1 Wealth and was owed $2,625 by C1 Wealth.

The Company and its affiliates are related parties under common control, and the existence of that control could create operating results and financial positions different than if the entities were autonomous.

# Note 4 - Retirement Plan

The Company maintains a 401(k) plan for substantially all full-time employees. Company contributions to the 401(k) plan were $92,475 for the year ended December 31, 2022.

# Note 5 - Non-Qualified Deferred Compensation Plan

The Company offers a non-qualified deferred compensation plan through its Parent to key employees as determined by the CEO. The effective date of the plan was May 1, 2019. The Company provided a 100% match to employee contributions for the year ended December 31, 2022. Employer contributions vest ratably over five years of service. The Company contributed $15,000 to the plan for the year ended December 31, 2022.

# Note 6 - Concentrations and Credit Risk

The Company is engaged in various trading and brokerage activities in which counter-parties primarily include broker dealers, banks and other financial institutions. The Company's transactions are cleared by other securities broker dealers under clearing agreements. Although

10

# **CreativeOne Securities, LLC**  
**Notes to Financial Statements**  
**December 31, 2022**---

the Company clears its transactions through other securities broker dealers, the Company is exposed to off-balance sheet risk in the event that customers or other parties fail to satisfy their obligations. Should a customer or other party fail to deliver cash or securities as agreed, the Company may be required to purchase or sell securities at unfavorable market prices. The Company seeks to minimize this risk through procedures designed to monitor the creditworthiness of its customers and to ensure that customer transactions are executed properly by the clearing broker dealer. At December 31, 2022, there were no amounts to be indemnified to the clearing brokers.

As of December 31, 2022, 99% of the Company's cash and cash equivalents were maintained with two financial institutions in the United States and are subject to credit risk to the extent those balances exceed Federal Deposit Insurance Corporation ('FDIC') or Securities Investor Protection Corporation ('SIPC') limitations. The Company's deposits at those two institutions are in excess of federally insured limits.

# Note 7 - Subsequent Events

Subsequent events are events or transactions that occur after the date of the balance sheet but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing the financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through March 31, 2023, and noted no events which required disclosure.

11

## **Supplemental Information**

12

# **CreativeOne Securities, LLC**  
 **Schedule I**  
 **Computation of Net Capital Under Rule 15c3-1 of the**  
 **Securities and Exchange Commission**  
 **December 31, 2022**

# **COMPUTATION OF NET CAPITAL**

| Total ownership equity qualified for net capital | $1,945,276 |
| --- | --- |
| Deductions and/or charges: |  |
| Non-allowable assets: |  |
| Due from other broker dealers | (61,442) |
| Prepaid expenses and other assets | (174,501) |
| Net capital before haircuts on securities positions | 1,709,333 |
| Haircuts on securities positions | - |
| Net Capital | $1,709,333 |

# **AGGREGATE INDEBTEDNESS**

| Items included in statement of financial position: |  |
| --- | --- |
| Accounts payable and accrued liabilities | $459,292 |
| Commissions payable | 1,275,649 |
| Deferred investment advisory representative renewal fees | 284,901 |
| Total aggregate indebtedness | $2,019,842 |

# **COMPUTATION OF BASIC NET CAPITAL REQUIREMENT**

| Minimum net capital required (6-2/3% of aggregate indebtedness) | $134,656 |
| --- | --- |
| Minimum dollar net capital requirement of reporting broker or dealer | $50,000 |
| Net capital requirement (greater of above two minimum requirement amounts) | $134,656 |
| Net capital in excess of required minimum | $1,574,677 |
| Ratio: aggregate indebtedness to net capital | 1.18 to 1.00 |

There are no material differences between the computation above and the computation included in the Company's corresponding unaudited FOCUS Report, Part IIA, Form X-17A-5 as of December 31, 2022 as amended.

13

# **CreativeOne Securities, LLC**  
**Schedule II**  
**Computation for Determination of Reserve Requirements and**  
**Information Relating to Possession or Control Requirements**  
**Under Rule 15c3-3 of the Securities and Exchange Commission**  
**At December 31, 2022**

The Company is exempt from the provision of Rule 15c3-3 under paragraph (k)(2)(ii) in that the Company carries no accounts, does not hold funds or securities for, or owe money or securities to, customers. The Company effectuates all financial transactions on behalf of its customers through another clearing broker on a fully disclosed basis. The Company's other business activities are considered non-covered under Footnote 74. Accordingly, there are no items to report under the requirements of this Rule.

Company's clearing firm: Pershing LLC.

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# **CreativeOne Securities, LLC**  
**Exemption Report**  
**For the Year Ended December 31, 2022**

15

MOSSADAMS

## Report of Independent Registered Public Accounting Firm

The Board of Managers
CreativeOne Securities, LLC

We have reviewed management's statements, included in the accompanying CreativeOne Securities, LLC Exemption Report, in which:

1) CreativeOne Securities, LLC (the Company) claims an exemption under paragraph (k)(2)(ii) of 17 C.F.R. §240.15c3-3 (the exemption provisions);

2) The Company states the Company met the identified exemption provisions throughout the most recent fiscal year without exception; and

3) The Company states the Company is also filing the exemption report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 (Footnote 74) because, throughout the most recent fiscal year, without exception:

- The Company limits its other business activities contemplated by Footnote 74 to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company, and

- The Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3).

The Company's management is responsible for compliance with the exemption provisions and the provisions of Footnote 74 and its statements.

Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about the Company's compliance with the exemption provisions and the provisions of Footnote 74. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the exemption provisions set forth in paragraph (k)(2)(ii) of 17 C.F.R. §240.15c3-3 and the provisions of Footnote 74 of SEC Release No. 34-70073.

Overland Park, Kansas
March 31, 2023

16

creativeOne

SECURITIES

## CREATIVEONE SECURITIES, LLC
## EXEMPTION REPORT

CreativeOne Securities, LLC (“the Company”) is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, “Reports to be made by certain brokers and dealers”). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following:

(1) The Company claimed an exemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3 (k)(2)[ii].
(2) The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3 (k) throughout the most recent fiscal year without exception.
(3) The Company is also filing this Exemption Report because the Company’s other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to: (1) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception.

## CREATIVEONE SECURITIES, LLC

I, Jeff Eisenhauer, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct.

Title: President

Sign: Date: 3-31-23

Jeff Eisenhauer

President/CCO

CreativeOne Securities, LLC

6330 Sprint Parkway

Overland Park, KS. 66211

SEC Filing #8-68494

Firm ID# 152974

![img-0.jpeg](img-0.jpeg)

888.909.9399 • 6330 Sprint Parkway, Suite 400, Overland Park, KS 66211 • creativeonesecurities.com

17

Member FINRA/SIPC and an Investment Advisor.

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0001482579

**Filer CCC:** XXXXXXXX

**Is this a LIVE or TEST filing?:** LIVE

**Would you like a Return Copy?:** No

### Submission Information

**Report Period Begin Date:** 01-01-2022

**Report Period End Date:** 12-31-2022

**Type of Registrant:** Broker-dealer

**Any material weaknesses identified?:** No

### Registrant Identification

**Name of Broker-Dealer:** CLIENT ONE SECURITIES LLC

**Business Address:** 6330 SPRINT PARKWAY, SUITE 400, OVERLAND PARK, KS, 66211

**Contact Person:** Susan Hayes

**Contact Phone:** 609-642-6593

### Independent Public Accountant Identification

**Accountant Name:** Moss Adams LLP

**Accountant Address:** 999 Third Avenue, Suite 2800, Seattle, WA, 98104

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

I, **Jeff Eisenhauer**, swear (or affirm) that, to the best of my knowledge and belief, the accompanying financial statements and supporting schedules pertaining to the firm of **CLIENT ONE SECURITIES LLC**, as of **12-31-2022**, are true and correct.

**Signature:** Jeff Eisenhauer

**Title:** President & Cheif Compliance Officer

**Notarized:** Yes