0MB APPROVAL 0 MB umber: 3235-0123 Expires: _ugust 31 , 2020 Estimated average burden hours er res onse .. . 12.00 UNITED STATES SECURITIES AND EXCHA GE COMMISSlO Washington, D. C. 20549 I SEC FILE NUMBER I ANNUAL AUDITED REPORT FORM X-I7A-5 PARTlli 8-69214 FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder REPORT FOR THE PERIOD BEGINNING - ~O~l/_O~ l /~18~ - - ANDE DING MM/DDNY 12/31 /18 MM/DDNY A. REGISTRANT IDE TJFICA TlON NAME OF BROKER - DEALER: OFFICIAL Zebed Securities LLC ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P .O. Box No.) I IO Central Park South Suite 2A o. and Street) New York (City) NY 10019 (Zip Code) (State) NAME AND TELEPHONE NUMBER OF PERSO TO CONTACT IN REGARD TO THIS REPORT Linda Grimm (21 2~897-1685 {Area Co e - Telephone No.) B.ACCO TANT IDE TIFICATIO INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* Lerner, Sipkin, CPA 's, LLP (Name - if individual, state Last, first middle name) 132 assau Street Suite I 023 (Address) ewYork (City) NY (State) 10038 (Zip Code) CHECK ONE: ~ Certified Public Accountant D Public Accountant D Accountant not resident in United States or any of its possessions. FOR OFFICIAL U SE O LY *Claims f or exemption from the requirement that the annual report be covered by the opinion of a11 independent public accou11tant must be supported by a statement offacl and circumstances relied on as the ba is for the exemption. See section 240. l 7a5(e) {2). EC l4 10 (3-91 ) ZEBED Securities LLC Statement of Financial Condition December 31, 2018 ZEBED Securities LLC TABLE OF CONTENTS This report** contains (check all applicable boxes) : [x] [x] [x] [ ] [ ] [ ] [ ] [ ] [ ] [ ] Report of Independent Register d Public Accounting Firm. Facing Page. Statement of Financial Condition. Statement of Operations. Statement of Changes in Members ' Equity. Statement of Cash FIO\ s. Statement of Changes in Liabilities Subordinated to Claims of General Creditors (not applicable). Computation of et Capital for Brokers and Dealers Pursuant to Rule 15c3-1 under the Securities Exchange Act of 1934. Computation for Detennination of Reserve Requirements for Brokers and Dealers Pursuant to Rule l 5c3-3 under the Securities Exchange Act of 1934. Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule l 5c3-3 under the Securities Exchange Act of 1934 (not applicable). [ ] [ ] [x] [ ] [ ] [ ] ** A Reconciliation, including appropriate explanations, of the Computation of Net Capital Pursuant to Rule 15c3- l and tbe Computation for Determination of Reserve Requirements Und r Rule 15c3-3 . A Reconciliation Between the Audited and Unaudited Statements of Financial Condition With Respect to Methods of Consolidation not applicable). An Affirmation. A copy of the SIPC Supplemental Report. Independent Accountants' Report on Statement of Exemption from Rule 15c3-3. Statement of Exemption from Rule 15c3~3. For condition of confidential treatment of certain portions of thi filing, see section 240.]7a5(e)(3). AF~IR_ MATION i, Jonat~an J." Sbepland, affirm Jbat, t_o th_e ·best pf my ·knowled_ge ~l;ld belie.f,.Jb.e accompanying statement of financial condition fle"rtain"ing·to Zebed Secm:ities LLC for the ,rear.- ended December 31, 2018,_is true and corre·cL I further ·affirm th~t neitJi'~r the Company _n or any qfficer or-diredor h_-!S any proprietary ip"terf!St in ~ny aCCQUDl ~(;l~sified solely--as· th~t o_f a cµstom~r. .Sigifk;;tJ>/?&JJ ,Ct[_/J V or~ ChiefCompliance Officer Title .,·· Notarv'. Public . '.,:... -. : .{ J ' ! .:"". ~ . I -~LERNER & SIPKIN CERTIFIED PUBLIC ACCOUNTANTS LLP 132 Nassau Street. New York. NY 10038 Tel 212.571.0064 / Fax 212.571.0074 Jay Lerner. C.P.A. Joseph G. Slpkln. C.P.A. Jleroer@leroerslpkln.com 1s1pk.tn@lernerslpklo.com REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of Zebed Securities LLC 110 Central Park South, Suite 2A New York, NY 10019 Opinion on the Fina.ncial Statement We have audited the accompanying statement of financial condition of Zebed Securities LLC as of December 31, 2018, and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Zebed Securities LLC as of December 31, 2018 in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion The financial statement is the responsibility of Zebed Securities LLC' s management. Our responsibility is to express an opinion on Zebed Securities LLC' s financial statement based on our audit. We are a public accounting finn registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Zebed 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 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 perfonning 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. f -t....w.v-- :J#- G/'tU w Lerner & Sipkin CPAs, LLP Certified Public Accountants (NY) We have served as Zebed Securities LLC's auditor since 2014. New York, NY March 5, 2019 Zebed Securities LLC Statement of Financial Condition December 31, 2018 Assets Cash Due from brokers Fixed assets (net of accumulated depreciation/amortization of $738,270) Prepaid expenses and other assets Total assets Liabilities and Member's Equity Accounts payable and accrued expenses Due to affiliate Total liabilities $ $ $ The accompanying notes are an integral part of this financial statement. 232,604 52,500 285,104 900 269 Member's equity Tota l liabilities and member's equity 520,584 490,051 158,666 16 072 1 185,373 $ 1,185,373 Zebed Securities LLC Notes to Financial Statement Year Ended December 31, 2018 1. Nature of Operations Zebed Securities LLC (the 'Company"), formerly LATAM Securities LLC, is a broker-dealer registered with the Securities and Exchange Commission (the 'SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"). During 2018, the Company had clearing agreements with two broker-dealers, thereby clearing all of its customers ' securities transactions on a fully-disclosed basis through these broker-dealers and accordingly does not hold customer securities accounts or perform custodial functions relating to their securities. 2. Summary of Significant Accounting Policies Basis of Presentation TI1ese financial statements were prepared in conformity with accounting principles generally accepted in the United States of America (' GAAP") which 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. Actual results could differ from these estimates. Revenue Recognition Securities transactions commissions and expenses relating to securities transactions are recorded on a trade-date basis. Income Taxes The Company is a single member limited liability company and treated as a disregarded entity for income tax reporting purposes. As such, income or loss of the Company, in general, is allocated to the member for inclusion in its income tax return. Accordingly, the Company has not provided for federal stat or local income taxes. Accounting for Uncertain ty in Income Taxes The Company recognizes the effect of income tax positions only when they are more than likely not to be sustained. On December 31 , 2018, management has determined that the Company had no uncertain tax positions that would require financial statement recognition or disclosure. Due from Brokers Due from brokers represents net amounts receivable from the Company's clearing brokers. Fixed Assets Fixed assets are recorded at cost, net of accumulated depreciation/amortization, which is calculated on a straight-line basis over three to se en years. Zebed Securities LLC Notes to Financial Statement Year Ended December 31, 2018 3. Transactions with related parties As of December 31 , 2018, the Company owes $52 500 in unpaid rent to an affilfate in connection with a prior lease with this affiliate. During 2018, the Company distributed capital totaling 6,820,350 to the Company's inclirect owner as the Company is winding down its operations. All of the Company's customer accounts are either for affiliates of this owner or accounts in which the owner has a beneficial interest. 4. Regulatory Requirements Th Company is subj ct to SEC Uniform Net Capital Rul 15c3-1 under the S curities Exchange Act of 1934, which requires the maintenance of minimW11 net capital, as defined. At December 31 , 2018, the Company had net capital of approximately $725,000 which exceeded its minimum capital requiremen t of 250,000 by approximately $475,000. The Company is exempt from the provisions of Rule l 5c3~3 under the Securities Exchange Act of 1934 in that the Company's activities are limited to those set forth in the conditions for exemption appearing in paragraph (k)(2)(ii). 5. ew Accounting Pronouncements Effecti e January 1, 2019 any operating leases will be subject to ASU 2016-02 which calls for the right to use lease assets and the present value of future lease payments to be reflected on the Company's Statement of Financial Condition. The Company does not expect that this change in generally accepted accounting principl s will hav any material effect on its o rall financial condition, its operations or its regulatory compliance. 6. Fixed Assets Fixed assets consist of the following: Furniture and equipment Automobile Leasehold Impro ements Artwork Less: Accumulated depreciation/amortization $ $ 349 919 73 069 452,1 73 21 ,775 (738,270) 158,666 Zebed Securities LLC Notes to Financial Statement Year Ended December 31, 2018 7. Off-Balance-Sheet-Risk and Concentration of Credit Risk The Company is engaged in various brokerage activities with other count rparties including customers and financial institutions. In the nonnal course of business, the Company may be exposed to the risk of loss in the event that the counterparty is unable to fulfill its contracted obligations and the Company has to purchase or sell the securities underlying the contract as a loss. A substantial portion of the Company s assets are in the custody of two clearing brokers. All cash deposits of the Company are held by two financial institutions and therefore are subject to the credit risk at those financial institutions. The Company's securities are held by two clearing brokers. The Company has not experienced any losses in such accounts and does not belie e there to be any significant credit risk with respect to the d posit or securities. 8. Going Concern The accompanying statements have been prepared assuming the Company will continue as a going concern. The Company had a loss from operations which rais s substantial doubt about th Company' s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management has pledged any additional support to the Company to enable it to continue as a going concern. 9. Subsequent E ents The Company s owner is in the process of selling the firm to another broker-dealer.