# RKCA, INC. X-17A-5 (2022-02-23) — Broker-dealer annual report - Company: RKCA, INC. - Form: X-17A-5 - Filed: 2022-02-23 - Period: 2021-12-31 - Accession: 0000789481-22-000002 - CIK: 789481 - File #: 8-35572 - Type: Broker-dealer - Material weakness: No - Auditor: Flynn & Company, Inc. - Auditor location: Cincinnati, OH - Contact: Mono Bhattacharya - Phone: 513-371-5533 - Email: brippe@rkca.com - Website: rkca.com - Signed by: Brent Rippe (President and CEO) Original filing: https://www.sec.gov/Archives/edgar/data/789481/000078948122000002/RKCAIncAnnualAudit12312021TD.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL REPORTS FORM X-17A-5 PART Ill** | 0MB APPROVAL | | |--------------------------|--| | 0MB Number: 3235-0123 | | | Expires: Oct. 31, 2023 | | | Estimated average burden | | | hours per response: 12 | | **SEC FILE NUMBER** **8-35572** | AND ENDING ---------
FILING FOR THE PERIOD BEGINNING 01/01/2021
12/31/2021
MM/DD/YY
MM/DD /YY
A. REGISTRANT IDENTIFICATION
NAME OF FIRM: ------------------------------
RKCA, Inc.
TYPE OF REGISTRANT {check all applicable boxes):
□ Security-based swap dealer
□ Major security-based swap participant
0 Broker-dealer
□ Check here if respondent is also an OTC derivatives dealer
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
1077 Celestial Street
(No. and Street)
Ohio
Cincinnati
45202
(City)
(State)
(Zip Code)
PERSON TO CONTACT WITH REGARD TO THIS FILING
Brent Rippe
(513) 997-4592
brippe@rkca.com
(Name)
(Area Code -Telephone Number)
(Email Address)
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Flynn & Company, Inc.
(Name -if individual, state last, first, and middle name)
7800 E. Kemper Road
Cincinnati
Ohio
45249
(Address)
(City)
(State)
(Zip Code)
11/17/2009
3876
(Date of Registration with PCAOB)(if applicable)
(PCAOB Registration Number, If applicable)
FOR OFFICIAL USE ONLY | FACING PAGE
Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|--|--|--| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | **• 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-S(e)(l)(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 0MB control number.** {1}------------------------------------------------ # **OATH OR AFFIRMATION** | I, Brent Rippe | swear (or affirm) that, to the best of my knowledge and belief, the | |----------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------| | financial report pertaining to the firm of RKCA, Inc. | as of | | December 31 | 2� 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·
as that of a customer. | · any account classified solely | ,��M�� c:J'otrv **Public** **Title: ., President and CEO** JOYCE TABAR Notary Public, State of Ohio My CommJaeion Expires 05-28-2024 ### **This filing\*\* contains (check all applicable boxes):** - **0 (a) Statement of financial condition.** - □ **(b) Notes to consolidated statement of financial condition.** - **0 (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).** - **0 (d) Statement of cash flows.** - **ta (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.** - □ **(f) Statement of changes in liabilities subordinated to claims of creditors.** - **D (g) Notes to consolidated financial statements.** - **ta (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.** - **ta 0) 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 240.1Sc3-3 or Exhibit A to 17 CFR 240.lSa-4, as applicable.** - **D (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3.** - **0 (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3.** - **D (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.lSa-4, as applicable.** - **ta (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 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.** - **0 (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.** - **D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.** - **0 (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable.** - □ **(t) Independent public accountant's report based on an examination of the statement of financial condition.** - **ta (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.** - **ta (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.** - **D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable.** - **D (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).** - **ta ( z) Other: A copy of the SIPC Supplemental Report.** - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5{e}{3) or 17 CFR 240.1Ba-7{d)(2), as applicable.* {2}------------------------------------------------ #### **RKCA,INC. SEC FILE NUMBER 8-35572** #### **FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION** #### **FOR THE YEAR ENDED DECEMBER 31, 2021 with** #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** **Filed pursuant to Rule 17a-5(e)(3) under the Securities Exchange Act of 1934 as a PUBLIC DOCUMENT** {3}------------------------------------------------ # **TABLE OF CONTE NTS** | | PAGE | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------| | REPORT OF INDEPEN
DENT REGISTERED PUBLIC ACCOUNTING FffiM | 1-2 | | FINANCIAL STATEMENTS | | | Statement of Financial Condition | 3 | | Statement of Income | 4 | | Statement of Changes in Shareholder's Equity | 5 | | Statement of Cash Flows | 6 | | Notes to the Financial Statements | 7-9 | | SUPPLEMENTARY INFORMATION | SCHEDULE | | Computation of Net Capital Pursuant to Rule 15c3-l under the
Securities Exchange Act of 1934 | | | Computation
for
Detennination
of
Reserve
Requirements
and
Infonnation for Possession for Control Requirements Pursuant to Rule
15c3-3 under the Securities Exchange Act of 1934 | 2 | | Report of Independent Registered Public Accounting Finn | | | Exemption from Reserve Requirements under Rule l 5c3-3 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** **To the Shareholders RKCA, Inc.** **Opinion on the Financial Statements** **We have audited the accompanying statement of financial condition of RKCA, Inc. as of December 31, 2021, the related statements of operations, changes in shareholders' equity, and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of RKCA, Inc. as of December 31, 2021, 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 RKCA, lnc.'s management. Our responsibility is to express an opinion on RKCA, lnc.'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 RKCA, Inc. 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 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.** # **Auditor's Report on Supplemental Information** **The Schedule I, Computation of Net Capital Under SEC Rule 15c3-1 and Schedule II, Computation for Determination of Reserve Requirements Under SEC Rule 15c3-3 (exemption) has been subjected to audit procedures performed in conjunction with the audit of RKCA, lnc.'s financial statements. The supplemental information is the responsibility of RKCA, lnc.'s management. Our audit procedures included determining whether the supplemental information 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 supplemental information. ln forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, Is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the Schedule I,** {5}------------------------------------------------ **Computation of Net Capital Under SEC Rule 1Sc3-1 and Schedule II, Computation for Determination of Reserve Requirements Under SEC Rule 15c3-3 (exemption) is fairly stated, in all material respects, in relation to the financial statements as a whole.** **We have served as RKCA, lnc.'s auditor since 2006. Cincinnati, OH February 15, 2022** {6}------------------------------------------------ #### **RKCA INC** #### **STATEMENT OF FINANCIAL CONDITION** #### **December 31, 2021** | ASSETS | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------| | CURRENT ASSETS:
Cash and cash equivalents
Fees receivable | 231,470
\$
32
000 | | Total current assets | 234,470 | | FIXED ASSETS:
Furniture
Equipment
Office equipment
Less accumulated depreciation | 1,018
6,612
52
387
13,017
t
13,017} | | OTHER ASSETS:
Note receivable
Investment in stock | 43,372
250
43,622
\$
278,092 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | CURRENT LIABILITIES:
Other accrued liabilities | 6,215 | | SHAREHOLDERS' EQUITY:
Common stock - No par value; 500 shares authorized, 300 shares
issued and outstanding, at stated value of \$5 per share
Additional paid-in capital
Accumulated earnings
Total shareholders' equity | 1,500
366,357
9519so2
2712
877
2782092
\$ | **The accompanying notes arc an integral part of tile financial statements. 3** {7}------------------------------------------------ #### **RICCA INC** #### STATEMENT OF INCOME #### For the \'ear Ended December 31, 2021 | REVENUES: | | |----------------------------------------------------|-------------| | Investment banking fees | \$6,186,596 | | Advisory fees | 947,899 | | Total revenue | 7,134,495 | | EXPENSES: | | | Direct costs related to invesbnent banking revenue | 4,630,036 | | Management fees | 2,268,527 | | Regulatory and Professional | 97,143 | | Other operating expense | 117,608 | | Total expenses | 7,113,314 | | Net income | S
21,181 | **TI1e acccmpanying notes ore an integral part cf Ille financial slatements.** {8}------------------------------------------------ #### **RKCAINC** #### **STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY** #### **For the Year Ended December 31, 2021** | | Common
Shares | Stoel<
Amount | Additional
Paid-In
Cal!ital | Retained
Earnings
(Accumulated
Deficit) | Total
Shareholders'
Egui� | |---------------------------------------------|------------------|------------------|-----------------------------------|--------------------------------------------------|---------------------------------| | BALANCE, December 31, 2020 | 300 | \$1,500 | S 366,357 | \$ 1,351,186 | \$ 1,719,043 | | Distributions to shareholders
Net income | | | | {1,468,347)
21,181 | ( 1,468,347)
21,181 | | BALANCE, December 31, 2021 | 300 | \$ 12
500 | \$ 3662
357 | 95,980)
(\$ | 271.877
\$ | **n,e nccompanyinB notes are an inleBf'III pnrt of the financial statements.** {9}------------------------------------------------ #### **RKCAINC** #### **STATEMENT OF CASH FLOWS** #### **For the Year Ended December 31, 2021** | CASH FLOWS FROM OPERA TING ACTIVITIES:
Net income
Adjustments to reconcile net income to net cash used in
operating activities: | \$
21,181 | |------------------------------------------------------------------------------------------------------------------------------------------|--------------| | Change in assets - (increase) decrease: | 6,628 | | Notes receivable | ( | | Change in liabilities - increase (decrease): | 3,086,830) | | Related party payable | 7,798) | | Accrued liabilities | ( | | Net cash used in operating activities | (3,066,819) | | CASH FLOWS FROM FINANCING ACTIVITIES: | ( | | Distribution to shareholders | 1,468,347) | | Net decrease in cash | (4,535,166} | | CASH AND CASH EQUIVALENTS: | 4,766,636 | | Beginning of year | \$ | | End of year | 231,470 | **The occmnpanying notes are 11n integral pnrt of the finuncial statements.** {10}------------------------------------------------ # **RKCA, INC.** # **NOTES TO THE FINANCIAL STA TEIMENTS** # **For the Year Ended December 31, 2021** ### **NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ### **Nature of Business** **RKCA, Inc. (the Company) is a broker/dealer registered under the Securities Exchange Act of 1934.** **Investment banking fees relate primarily to merger and acquisition activities and to a much lesser extent, private placement offerings.** **As a member of Financial Industry Regulatory Authority, Inc. (FINRA), the Company is exempt from the requirements of Rule 15c3-3 of the Securities and Exchange Commission (SEC) because it operates as a Non-Covered Finn under that rule.** # **Basis of Presentation** **The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (GAAP) as contained in the Accounting Standards Codification (ASC) issued by the Financial Accounting Standards Board (F ASB). The financial statements of the Company have been prepared on the accrual basis of accounting in accordance with GAAP. A summacy of significant accounting policies follow are described below to enhance the usefulness of the financial statements to the reader.** # **Cash and Cash Equivalents** **For statement of financial condition and cash flow purposes, the Company considers all highly liquid debt instruments, with a maturity of three months or less at date of purchase to be cash equivalents.** ### **Accounts Receivable** **Accounts receivable are stated at net realimble value. The Company provides an allowance for doubtful accounts based on management's periodic review of accounts. Accounts are considered delinquent when payments have not been received within the agreed upon terms and are written off when management determines that collection is not probable. As of December 31, 2021, the allowance for doubtful accounts was \$0.** ### **Revenue Recognition** ### *M&A Advisory Fees* **The Company provides advisory services on mergers and acquisitions (M&A). Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers received from customers are recognized as revenue based on the terms of the contract.** {11}------------------------------------------------ # **RICCA, INC.** ### **NOTES TO THE FINANCIAL STATElVIENTS** ### **For the Year Ended December 31, 2021** #### **NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** #### **Revenue Recognition (Continued)** # *Significant J11dgments* **Revenue from contracts with customers include fees from investment banking services. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether perfonnance 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.** # **Fixed Assets** **Fixed assets are stated at cost Depreciation of fixed assets is recorded using the straight-line method over the useful lives of the assets. Maintenance and repair costs are expensed as incurred. The estimated useful lives of fixed assets are as follows:** | Leasehold improvements | 5 years | |------------------------|---------| | Office equipment | 7 years | | Furniture and fixtures | 7 years | | Computer equipment | 3 years | **The Company capitalizes leasehold improvements, office equipment, furniture and fixtures, and computer equipment with amounts over \$ 5,000.** ### **Net Capital Requirements** **The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-l ), 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 3 1, 2021, the Company had net capital of\$225,2SS which was \$220,255 in excess of its required net capital of\$5,000. The Company's ratio of aggregate indebtedness to net capital was 2.76% at December 31, 2021, the Company had \$6,215 of aggregate indebtedness.** #### **Income Taxes** **The Company is not a tax-paying entity for federal income tax purposes. Income or loss from the Company is reflected in the individual tax returns of the shareholders, due to the election of S-Corporation status under the Internal Revenue Code. The Company utilizes the cash basis of accounting for income for filing purposes. The Company's tax year end is December 31.** **The Company follows the provisions of** *Accounting for Uncertainty* **in** *Income Taxes* **as required by the ASC standards. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would be more likely than not to sustain the position following an audit For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than SO percent likelihood of being realized upon ultimate settlement with the relevant tax authority.** {12}------------------------------------------------ # **RKCA, INC.** # **NOTES TO THE FINANCIAL STATEMENTS** # **For the Year Ended December 3 1, 2021** # **NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** # **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 revenues and expenses during the reporting period. Actual results could differ from those estimates. Changes in estimates are reflected in the periods in which they become known. Significant estimates are used when accounting for the allowance for bad debts.** # **Subsequent Events** **Subsequent events have been evaluated through February 15, 2022, the date the financial statements were available to be issued.** # **NOTE 2 - CONCENTRATIONS OF CREDIT RISK** **Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents. The Company maintains its cash and cash equivalents in bank accounts which, at times, may exceed federally insured limits. The Company has not experienced any such losses in these accounts.** # **NOTE 3 - RELATED PARTY** **The Company is affiliated with RKCA Services, LLC., which provides management and business services to the Company, including financial personnel. RKCA Services, LLC. charges personnel fees and substantially all related operating expenses to the Company. Included in the accompanying statement of operations of the Company, are personnel fees and expenses totaling \$2,268,527 for the year ended December 3 1, 2021.** # **NOTE 4 - NOTE RECEIVABLE** **Note receivable consisted of the following at December 31, 2021:** | Promissory note; payable upon demand; interest rate of 0.5%; unsecured | \$43,372 | |------------------------------------------------------------------------|----------| | | \$43Jll | # **NOTE 5 -RISKS AND UNCERTAINTIES** **In March of 2020, the World Health Organization declared the outbreak of the COVID-19 a pandemic which continues to spread throughout the United States. COVID-19 has caused a severe negative impact on the world economy and has contributed to significant declines and volatility in financial markets. The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Company for future periods. Management is carefully monitoring the situation and evaluating its options as circumstances evolve.** {13}------------------------------------------------ # SUPPLEMENTARY INFORMATION {14}------------------------------------------------ ## **SCHEDULE I** #### **RKCA, INC.** #### **COMPUTATION OF NET CAPITAL PURSUANT TO RULE 15c3-1 UNDER THE SECURITIES AND EXCHANGE ACT OF 1934** #### **December 31, 2021** | | Unaudited
Amounts Per
December
31
FOCUS Report | |----------------------------------------------------------|------------------------------------------------------------| | NET CAPITAL: | | | Shareholder's equity | \$271,877 | | Nonallowable assets | ( 46,622) | | Net capital | 225,255 | | MINIMUMCAPITAL
REQUIRED
TO
BEMAINTAINED | | | (greater of \$5,000 or 6-2/3% of aggregate indebtedness) | 5,000 | | Excess net capital | s.220.2ss. | | Aggregate indebtedness | | | Ratio of aggregate indebtedness to net capital | | **There are no material reconciling items between the amounts presented above and the amounts as reported in the RI11) Is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 CFR 240.17a-5, "Reports to be made by certain brokers and dealers11). This 6xemptlon Report was prepared as required by 17 CF 240.17a-5(d)(1) and (4). To the best of Its knowledge and belief, the Company states the following:** - **1. The Company receives transaction-based compensation from clients for private placements, mergers, acquisitions, divestitures, restructurlngs and reorganizations, valuations and similar services. The Company also receives fees for advisory services. The Company does not receive or hold any customer funds or securities.** - **2. The Company claimed an exemption as a Non-Covered Firm and (1) did not directly or Indirectly receive, hold or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted In compliance with paragraph (a) or (b)(2) of Rule lSc-2-4; (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined In Rule 15c3-3).** - **3, The Company has met this exemption for the entire fiscal year ending December 31, 2021 without exception.** **r:°" , usl;nDd br, �28��8�** **Scott Horne, FINOP** {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) **Independent Accountant's Report on Applying Agreed-Upon Procedures Related to an Entity's SIPC Assessment Reconciliation** **To the Board of Directors RKCA, Inc.** **We have performed the procedures included in Rule 17a-S(e)(4} under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC} Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2021. Management of RKCA, Inc. (Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7.** **Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2021. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows:** - **1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences;** - **2) Compared the Total Revenue amount reported on the Annual Audited Report Form X-17A-5 Part Ill for the year ended December 31, 2021 with the Total Revenue amount reported In Form SIPC-7 for the year ended December 31, 2021, noting no differences;** - **3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; and** - **4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences.** **We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2021. Accordingly, we do** {19}------------------------------------------------ **not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.** **We are required to be Independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report Is intended solely for the information and use of the Company and SIPC and Is not Intended to be and should not be used by anyone other than these specified parties.** **Cincinnati, OH February 15, 2022** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.