# EDGAR Filing Document

**Accession Number:** 0001435253
**File Stem:** 0001435253-23-000003
**Filing Date:** 2023-3
**Character Count:** 24206
**Document Hash:** 84745185c96f61ee68adaa008cd8e58e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001435253-23-000003.hdr.sgml**: 20230330

**ACCESSION NUMBER**: 0001435253-23-000003

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

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230330

**DATE AS OF CHANGE**: 20230330

**EFFECTIVENESS DATE**: 20230330

**PERIOD START**: 20220101

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LIVINGSTON SECURITIES, LLC
- **CENTRAL INDEX KEY:** 0001435253
- **IRS NUMBER:** 061818796
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-67901
- **FILM NUMBER:** 23778489

**BUSINESS ADDRESS:**
- **STREET 1:** 626 REXCORP PLAZA
- **STREET 2:** SUITE 603, WEST TOWER
- **CITY:** UNIONDALE
- **STATE:** NY
- **ZIP:** 11556
- **BUSINESS PHONE:** 212.520.8479

**MAIL ADDRESS:**
- **STREET 1:** 626 REXCORP PLAZA
- **STREET 2:** SUITE 603, WEST TOWER
- **CITY:** UNIONDALE
- **STATE:** NY
- **ZIP:** 11556

### Attached PDF Documents

**Attachment 1:** `lsecpublic.pdf`

# LIVINGSTON SECURITIES LLC

## STATEMENT OF FINANCIAL CONDITION

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

8-67901

# 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 | 01/01/2022 | AND ENDING | 12/31/2022 |
| --- | --- | --- | --- |
|  | MM/DD/YY |  | MM/DD/YY |

# A. REGISTRANT IDENTIFICATION

NAME OF FIRM: Livingston 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.)

626 RexCorp Plaza, Suite 603, West Tower

| (No. and Street) |  |  |
| --- | --- | --- |
| Uniondale | NY | 11556 |
| (City) | (State) | (Zip Code) |

PERSON TO CONTACT WITH REGARD TO THIS FILING

| Scott Livingston | 212-520-8481 | scott@livingstonsecurities.com |
| --- | --- | --- |
| (Name) | (Area Code - Telephone Number) | (Email Address) |

# B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*

Ohab and Company, P.A.

| (Name - if individual, state last, first, and middle name) |  |  |  |
| --- | --- | --- | --- |
| 100 E. Sybelia Ave, Suite 130 Maitland |  | FL | 32751 |
| (Address) | (City) | (State) | (Zip Code) |
| 7-28-2004 |  | 1839 |  |

(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, Scott Livingston, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Livingston 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.

Diane M. Venezia
Notary Public, State of New York
No. 02VE5063839

Qualified in Nassau County

Commission Expires July 29, 2024

Diane M. Venezia

Notary Public

Diane M. Venezia
Title:
Chief Executive 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:

**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.

# LIVINGSTON SECURITIES, LLC

DECEMBER 31, 2022

# TABLE OF CONTENTS

|  | Page |
| --- | --- |
| Report of Independent Registered Public Accounting Firm | 1 |
| Statement of Financial Condition | 2 |
| Notes to the Financial Statement | 3-8 |

[LOGO]

Chab and Company, P.A.

100 E. Sybelia Ave. Suite 130

Maitland, FL 32751

Certified Public Accountants

Email: pam@ohabco.com

Telephone 407-740-7311

Fax 407-740-6441

# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Member's

of Livingston Securities, LLC

# Opinion on the Financial Statement

We have audited the accompanying statement of financial condition of Livingston Securities, LLC as of December 31, 2022, 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 Livingston Securities, LLC as of December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.

# Basis for Opinion

This financial statement is the responsibility of Livingston Securities, LLC's management. Our responsibility is to express an opinion on Livingston Securities, LLC'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 Livingston Securities, LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Chab and Company, P.A.

We have served as Livingston Securities, LLC's auditor since 2022.

Maitland, Florida

March 29, 2023

# **LIVINGSTON SECURITIES, LLC**
**STATEMENT OF FINANCIAL CONDITION**
**DECEMBER 31, 2022**

**ASSETS**

| Cash | $ | 208,425 |
| --- | --- | --- |
| Clearing deposit |  | 100,000 |
| Securities owned, at fair value |  | 18,400 |
| Commission receivable |  | 10,948 |
| Other assets |  | 13,327 |
| Total assets | $ | 351,100 |

**LIABILITIES AND MEMBER'S EQUITY**

| Liabilities: |  |  |
| --- | --- | --- |
| Accounts payable | $ | 60,257 |
| Deferred revenue |  | 6,500 |
| Due to related parties (Note 4) |  | 62,689 |
| Total liabilities |  | 129,446 |

Commitment and Contingencies (Note 5)

| Member's equity |  | 221,654 |
| --- | --- | --- |
| Total liabilities and member's equity | $ | 351,100 |

See notes to the financial statements.

2

# **LIVINGSTON SECURITIES, LLC**  
**NOTES TO THE FINANCIAL STATEMENT**  
**DECEMBER 31, 2022**---

# **1. Organization and Significant Accounting Policies**

# **Organization and business**

Livingston Securities, LLC (the 'Company') is a New York Limited Liability Company formed on February 21, 2008. The Company conducts a securities investment banking business in which it purchases and sells securities on behalf of its clients. The Company is registered with the U.S. Securities and Exchange Commission ('SEC') under the Securities Exchange Act of 1934 and is a member of both the Financial Industry Regulatory Authority, Inc. ('FINRA'). The Company is a wholly owned subsidiary of the Livingston Group of Companies, LLC (the 'Parent'). In addition, the Company is affiliated with Livingston Services, LLC (the 'Related Entity') which is also a wholly owned subsidiary of its Parent.

# **Revenue recognition**

The Company records securities transactions and related revenue and expenses on a settlement date basis. Transactions recorded on a trade date basis would not be materially different. Investment banking revenue is recorded based on the terms of the respective agreements and deferred until earned by the Company.

In accordance with ASU No. 2014-09, 'Revenue from Contracts with Customers' ('ASC Topic 606') revenues from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for those promised services (i.e., the 'transaction price'). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration, if any.

3

# **LIVINGSTON SECURITIES, LLC**  
**NOTES TO THE FINANCIAL STATEMENT**  
**DECEMBER 31, 2022**---

# **1. Organization and Significant Accounting Policies (con't)**

# **Agreement with clearing broker**

The Company under Rule 15c3-3 (k)(2)(ii) is exempt from the reserve and possession or control requirements of Rule 15c3-3 of the Securities and Exchange Commission. The Company does not carry or clear customer accounts. Accordingly, all customer transactions are executed and cleared on behalf of the Company by its clearing broker on a fully disclosed basis. The Company's agreement with its clearing broker provides that as clearing broker, that firm will make and keep such records of the transactions effected and cleared in the customer accounts as are customarily made and kept by a clearing broker pursuant to the requirements of Rule 17a-3 and 17a-4 of the Securities and Exchange Act of 1934, as amended (the 'Act'). It also performs all services customarily incident thereon, including the preparation and distribution of customer's confirmations and statements and maintenance margin requirements under the Act and the rules of the Self Regulatory Organizations of which the Company is a member.

# **Cash and cash equivalents**

For the purposes of the statement of cash flows, the Company considers money market funds with original maturities of three months or less to be cash equivalents.

# **Estimates**

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

# **Income Taxes**

The financial statement doesn't include a provision for income taxes because the Company is not a taxable entity and its member is taxed on its respective share of the Company's earnings.

4

# **LIVINGSTON SECURITIES, LLC**  
**NOTES TO THE FINANCIAL STATEMENT**  
**DECEMBER 31, 2022**---

# **1. Organization and Significant Accounting Policies (con't)**

# **Income Taxes (con't)**

The company is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority. Including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. The Company files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states. The Company is not subject to income tax return examinations by major taxing authorities for years before 2018. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that reduces net assets. However, the Company's conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analysis of and changes to tax laws, regulations and interpretations thereof. The Company recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income taxes payable, if assesses. No interest expense or penalties have been recognized as of and for the year ended December 31, 2022.

# **Furniture and equipment**

Furniture and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of three years.

# **Basis of Accounting and Trading and Valuation of Securities**

The Company values its securities in accordance with Accounting Standards Codification 820 - Fair Value Measurements ('ASC 820'). Under ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the 'exit price') in an orderly transaction between market participants at the measurement date.

In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

5

# **LIVINGSTON SECURITIES, LLC**  
**NOTES TO THE FINANCIAL STATEMENT**  
**DECEMBER 31, 2022**---

# **1. Organization and Significant Accounting Policies (con't)**

# **Basis of Accounting and Trading and Valuation of Securities (continued)**

Observable inputs are those that market participants would be use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company's assumption about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:

Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and blockage discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable. Either directly or indirectly.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

# **2. Fair Value of Financial Instruments**

The Company's assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Company's significant accounting policies in Note 1.

Assets utilizing level 1 inputs include two equity positions valued at $18,400 as of December 31, 2022. The Company did not have any level 2 or 3 assets as of December 31, 2022.

# **3. Net Capital Requirements**

Pursuant to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, the Company is required to maintain a minimum net capital, as defined under such provisions. At December 31, 2022, the Company had net capital of $205,567 and net capital requirement of $100,000. The Company's net capital ratio (aggregate indebtedness to net capital) was 0.63 to 1. According to Rule 15c3-1, the Company's net capital ratio shall not exceed 15 to 1.

6

# **LIVINGSTON SECURITIES, LLC**  
**NOTES TO THE FINANCIAL STATEMENT**  
**DECEMBER 31, 2022**---

# **4. Commitments and Related Party Transactions**

The Company is provided office space and facilities from its Related Entity under as expense sharing agreement. Under the agreement the Company is required to reimburse the Related Entity 90% of the costs to utilize common office space, personnel and administrative services. The Company incurred a total of $32,109 to this related entity for the year ended December 31, 2022.

The Company has a payable of $51,092 to a Related Entity and has a payable of $11,597 to its Parent as of December 31, 2022.

The parent provided $800,000 of capital contributions to the Company during the year 2022.

# **5. Financial Instruments, Off-Balance Sheet Risk and Contingencies**

In the normal course of business, the Company's client activities, through its clearing broker, involve the execution, settlement and financing of various client securities transactions. These activities may expose the Company to off- balance sheet risk. In the event the client fails to satisfy its obligations, the Company may be required to purchase or sell financial instruments at prevailing market prices in order to fulfill the client's obligations.

The Company has receivables from and deposits with its clearing broker as shown on the accompanying statement of financial condition. These amounts are not covered by SIPC and are subject to loss should the clearing broker cease business.

The Company's financial instruments, including cash, clearing deposit, commission receivable, other assets, accounts payable, due to related parties and deferred revenue are carried at amounts that approximate fair value due to the short-term nature of those instruments.

The Company maintains its cash in one financial institution. At times, the amount on the deposit at this institution may exceed the maximum balance insured by the Federal Deposit Insurance Corporation ('FDIC').

7

# **LIVINGSTON SECURITIES, LLC**  
**NOTES TO THE FINANCIAL STATEMENT**  
**DECEMBER 31, 2022**---

# **6. Recent Account Pronouncements**

# ***Leases***

In February 2016, the FASB issued (ASU) 2016-02, “Leases (Topic 842)”. This update includes a lease accounting model that recognizes two types of leases - finance leases and operating leases. The standard requires that a lessee recognize on the statement of financial condition relating to leases with terms of more than twelve months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on its classification as a finance or operating lease. There was no effect on the Company’s financial statement for the year ending December 31, 2022.

# **7. Subsequent Events**

The Company has performed an evaluation of subsequent events through the date the financial statement was issued. The evaluation did not result in any subsequent events that required disclosures and/or adjustments.

8

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

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0001435253

**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:** LIVINGSTON SECURITIES, LLC

**Business Address:** 626 REXCORP PLAZA, SUITE 603, WEST TOWER, UNIONDALE, NY, 11556

**Contact Person:** Scott Livingston

**Contact Phone:** 212 520 8481

### Independent Public Accountant Identification

**Accountant Name:** Ohab and Company, P.A.

**Accountant Address:** 100 E. Sybelia Ave,, Suite 130, Maitland, FL, 32751

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

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

**Signature:** Scott Livingston

**Title:** Chief Executive Officer

**Notarized:** Yes