# EDGAR Filing Document

**Accession Number:** 0001075680
**File Stem:** 0001075680-23-000001
**Filing Date:** 2023-3
**Character Count:** 25437
**Document Hash:** 741478bcbab96b593bc3d165f2ea3699
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001075680-23-000001.hdr.sgml**: 20230331

**ACCESSION NUMBER**: 0001075680-23-000001

**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:** ESSEX SECURITIES LLC
- **CENTRAL INDEX KEY:** 0001075680
- **IRS NUMBER:** 043482688
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-51472
- **FILM NUMBER:** 23788151

**BUSINESS ADDRESS:**
- **STREET 1:** 95 CHRISTOPHER COLUMBUS DR
- **STREET 2:** SUITE 16-11
- **CITY:** JERSEY CITY
- **STATE:** NJ
- **ZIP:** 07302
- **BUSINESS PHONE:** 917.846.5970

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 3602
- **STREET 2:** SUITE 2013
- **CITY:** JERSEY CITY
- **STATE:** NJ
- **ZIP:** 07303-3602

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ESSEX SECURITIES, LLC
- **DATE OF NAME CHANGE:** 20020318

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ESSEX SECURITIES LLC
- **DATE OF NAME CHANGE:** 20020315

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FIRST ESSEX SECURITIES, LLC.
- **DATE OF NAME CHANGE:** 20020307

### Attached PDF Documents

**Attachment 1:** `EssexSecPublic22.pdf`

# ESSEX SECURITIES LLC

# FINANCIAL STATEMENT AND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Pursuant to Rule 17a-5(d) of the Securities and Exchange Commission

For the Year Ended December 31, 2022

# 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

8-51472

# 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: Essex 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.)

95 Christopher Columbus Dr., Suite 16-11

| (No. and Street) |  |  |
| --- | --- | --- |
| Jersey City | NJ | 07302 |
| (City) | (State) | (Zip Code) |

PERSON TO CONTACT WITH REGARD TO THIS FILING

| Prakash Gupta | 201-777-7121 | pgupta@essexsecurities.com |
| --- | --- | --- |
| (Name) | (Area Code - Telephone Number) | (Email Address) |

# B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*

TPS Thayer LLC

| (Name - if individual, state last, first, and middle name) |  |  |  |
| --- | --- | --- | --- |
| 1600 Highway 6, Suite 100 | Sugar Land | TX | 77478 |
| (Address) | (City) | (State) | (Zip Code) |
| 07/14/2020 |  | 6706 |  |
| (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, Prakash Gupta, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Essex Securities LLC, as of December 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.

Prakash Gupta

Maria C Byrne 3/6/23

This filing** contains (check all applicable boxes):

MARIA C BYRNE

NOTARY PUBLIC

STATE OF NEW JERSEY

MY COMMISSION EXPIRES MAY 12, 2025

☑ (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:

**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.

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

## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Director and Member  
Essex Securities, LLC  
95 Christopher Columbus Dr., Suite 16-11  
Jersey City, NJ 07302

### Opinion on The Financial Statements

We have audited the accompanying statement of financial condition of Essex Securities, LLC (the 'Company') as of December 31, 2022, and the related notes (collectively referred to as '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, in accordance with accounting principles generally accepted in the United States of America.

### Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As described in Note 3 to the financial statements, the Company has suffered losses from operations and negative cash used in operating activities and does not have cash to cover operations, that raise substantial doubt about its ability to continue as a going concern. Management's plans regarding these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

### 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 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 from material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risk 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 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.

www.TPSCPAS.com

1600 Highway 6, Suite 100 | Sugar Land, TX 77478 | T: 281.552.8430 | F: 281.552.8431

TPS THAYER
Certified Public Accountants

TPS Thayer, LLC

TPS Thayer LLC

We have served as Essex Securities, LLC's auditor since 2021.

Sugar Land, TX

March 31, 2023

www.TPSCPAS.com

1600 Highway 6, Suite 100 | Sugar Land, TX 77478 | T: 281.552.8430 | F: 281.552.8431

# **Essex Securities, Inc.**
**Statement of Financial Condition**
**As of December 31, 2022**

# **Assets**

# **Current assets**

| Cash and cash equivalents | $9,994 |
| --- | --- |
| Clearing deposit | 46,323 |
| Trading Securities | 1,453,012 |
| Accounts receivable | 78,458 |
| Security deposit | 450 |
| Prepaid expenses | 57,046 |
| Total assets | $1,645,283 |

# **Liabilities and Member's Equity**

# **Current liabilities**

| Accounts payable and accrued expenses | $30,361 |
| --- | --- |
| Payable to Clearing Broker | 226,439 |
| Commissions payable | 143,502 |
| Total current liabilities | 400,302 |

# **Commitments and contingencies**

-

# **Member's equity**

| Member's equity | 1,244,981 |
| --- | --- |
| Total member's equity | 1,244,981 |
| Total liabilities and member's equity | $1,645,283 |

The accompanying notes are an integral part of these financial statements

2

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

# **NOTE 1 - Description of Business**

Essex Securities, LLC (the “Company”), is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company was organized under the laws of the State of Massachusetts on April 23, 1999 and is headquartered in Jersey City, New Jersey. The company has one member of this LLC, ES Group, Inc., which owns 100% interest in the Company. The Company acts as a broker dealer in securities transactions for its customers. The Company established a new fully-disclosed clearing broker relationship with RBC Capital Markets LLC (“RBC”) on January 22, 2020 and terminated its clearing broker relationship with INTL FC Stone Financial Inc. on February 2, 2020. The company also has representatives who sell mutual funds, annuities, and alternative investments.

On October 19, 2018 the Company entered a Purchase Agreement with Pinnacle Holding Company, LLC (PHC) to sell all of the membership interest of the Company to PHC. The transaction received FINRA approval under Rule 1017 application on March 1, 2019. On November 5, 2019, the Company entered a Purchase Agreement with ES Group, Inc. to sell all of the membership interest of the Company to ES Group, Inc.. The transaction received FINRA approval under Rule 1017 application on July 20, 2020.

# **NOTE 2 - Summary of Accounting Policies**

# **Basis of Presentation**

The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (GAAP).

# **Cash and Cash Equivalents**

The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. There were no cash equivalents at December 31, 2022.

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

# **Accounts Receivable**

The Company considers accounts receivable to be fully collectable; accordingly, no allowance for doubtful accounts is required. If amounts become uncollectable, they will be charged to operations when that determination is made.

# **Managements Use of Estimates**

The preparation 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

# **Current Expected Credit Losses**

In June 2016, the FASB issued ASU No. 2016-13 (Topic 326) Measurement of Credit Losses on Financial Instruments, which significantly changed the way entities recognize and record credit losses on financial instruments such as loans, loan commitments, and other financial assets. The CECL model requires measurement of expected credit losses for financial assets measured at amortized cost, net investments in leases, and off-balance sheet credit exposures based on historical experience, current conditions, and reasonable and supportable forecasts over the remaining contractual life of the financial assets.

3

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

The Company, may, at times, have an account receivable related to retainer fees from executed agreements with independent external parties. In some circumstances, significant judgement is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. As such, the Company regularly reviews its accounts receivable for any bad debts based on the nature and contractual life or expected life of the financial assets, the Company's collection experience, and customer worthiness.

# **Income Taxes**

As a limited liability company, the Company is treated as a partnership for Federal and State income tax purposes. Accordingly, no provision for income taxes has been recorded in the accompanying statement of operations for the year ended December 31, 2022. The partnership tax returns for calendar year 2018 and prior are no longer subject to review by the taxing authorities.

# **NOTE 3 - Going Concern**

These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its members and related parties, the ability of the Company to obtain necessary equity financing to continue operations, and ultimately the attainment of profitable operations.

As of December 31, 2022, the Company had a net working capital of $1,244,981, and incurred a net loss of $31,867 and used $1,273,797 of cash flows for operating activities. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

# **NOTE 3 - Fair Value Measurements**

The 'Fair Measurements and disclosures' topic in the FASB Accounting Standards Codification establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3), defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. FASB ASC 820 requires disclosures of the fair values of most financial instruments for which it is practicable to estimate that value. The scope of FASB ASC 820 excludes certain financial instruments such as trade receivables and payables when the carrying value approximates the fair value, employee benefit obligations and all non-financial instruments, such as fixed assets. The fair value of the Company's assets and liabilities which qualify as financial instruments under FASB ASC 820 approximate the carrying amounts presented in the Statement of Financial Condition.

The three levels of the fair value hierarchy under FAS 157 and its applicability to the Company are described:

- Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities the Company has the ability to assess. As required by the FASB 'Fair Value Measurements and Disclosures' topic, the Company does not adjust the quoted prices for these investments even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

4

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

- Level 2 - Pricing inputs are inputs (other than quoted prices included within level 1) that are observable for the asset or liability, either directly or indirectly for substantially the full term through corroborations with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to those investments.
- Level 3 - Pricing inputs are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 includes investments that are supported by little or no market activity.

|  | Level 1 | Level 2 | Level 3 | Total |
| --- | --- | --- | --- | --- |
| Trading Securities | 1,453,012 | - | - | 1,453,012 |
| Total | 1,453,012 | - | - | 1,453,012 |

Trading securities are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Unrealized gains and losses are included in earnings and recorded at the end of each month. Realized gains and losses are included in earnings and recorded upon the sale of securities.

Certain financial instruments are carried at cost on the balance sheet, which approximates fair value due to their short term, highly liquid nature. These instruments include cash, accounts receivables, accounts payable and accounts payable-related party.

# **NOTE 4 - Deposits and Clearing Organizations**

As required by its clearing organization, a deposit of $50,000 exists at RBC Capital Markets LLC, as shown on the Statement of Financial Condition as of December 31, 2022 netted against a $3,677 liability to clearing broker for a balance of $46,323.

# **NOTE 5 - Account Receivables**

As of December 31, 2022, the Company had accounts receivable of $78,458. The Company has no allowance for bad debt as they believe the amounts are collectable.

# **NOTE 6 - Net Capital Requirements**

The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (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 15 to 1. At December 31, 2022, the Company had net capital of $1,048,898, which was $948,898 in excess of its required net capital of $100,000. The Company's ratio of aggregate indebtedness to net capital computed in accordance with Rule 15c3-1 was .25 to 1.

The Company qualifies under the exemptive provisions of Rule 15c3-3 under Section (k)(2)(ii) of the Rule, as it does not carry security accounts of customers or perform custodial functions related to customer securities.

5

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

# **NOTE 8 - Prepaid Expenses**

As of December 31, 2022, the Company had Prepaid expenses of $57,046, noted below:

| FINRA renewal | $ | 16,146 |
| --- | --- | --- |
| Prepaid E&O Insurance |  | 21,583 |
| Bloomberg |  | 17,452 |
| Prepaid other |  | 1,865 |
|  | $ | 57,046 |

# **NOTE 9 - Payable to Clearing Broker**

As of December 31, 2022 the Company had a payable to the clearing broker of $226,439.

# **NOTE 10 - Commission Payable**

As of December 31, 2022 the Company had a commission payable of $143,502.

# **NOTE 11 - Accounts Payable and Accrued Expenses**

As of December 31, 2022 the Company had $30,361 of accounts payable and accrued liabilities:

| Accounts Payable | $ | 28,622 |
| --- | --- | --- |
| Credit card |  | 1,739 |
| Total | $ | 30,361 |

# **NOTE 11 - Accounts Payable and Accrued Expenses**

The Company recorded commission expense of $889,743 for the year ended December 31, 2022.

# **NOTE 13 - Concentrations of Credit Risk**

The Company is engaged in various trading and brokerage activities in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company’s policy to review, as necessary, the credit standing of each of the counterparties.

# **Note 14 - Commitments and Contingencies**

From time to time the Company is subject to threatened and asserted claims in the ordinary course of business. Because litigation and arbitration are subject to inherent uncertainties and the outcome of such matters cannot be predicted with certainty, future developments could cause any one or more of these matters to have a material impact on the Company’s financial condition, results of operations or liquidity in any future period.

# **Note 15 - Subsequent Events**

Management has evaluated all events or transactions that occurred after December 31, 2022 through March 31, 2023, the date of the issued financial statements. During this period, there were no material recognizable subsequent events that required recording or disclosures in the December 31, 2022, financial statements.

6

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

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0001075680

**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:** ESSEX SECURITIES LLC

**Business Address:** 95 CHRISTOPHER COLUMBUS DR, SUITE 16-11, JERSEY CITY, NJ, 07302

**Contact Person:** Prakash Gupta

**Contact Phone:** 201-777-7121

### Independent Public Accountant Identification

**Accountant Name:** TPS Thayer LLC

**Accountant Address:** 1600 Highway 6, Suite 100, Sugar Land, TX, 77478

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

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

**Signature:** Prakash Gupta

**Title:** CEO

**Notarized:** Yes