# ENERECAP PARTNERS, LLC X-17A-5 (2021-02-24) — Broker-dealer annual report - Company: ENERECAP PARTNERS, LLC - Form: X-17A-5 - Filed: 2021-02-24 - Period: 2020-12-31 - Accession: 0000863317-21-000002 - CIK: 863317 - File #: 8-42622 - Material weakness: No - Auditor: Ohab and Company, PA - Auditor location: Maitland, FL - Contact: Brent E Hippert - Phone: 4435418400 - Signed by: Christopher Edmonds (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/863317/000086331721000002/ene2020fspubf.pdf --- {0}------------------------------------------------ UNITED STATES SECURITillSAND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00 # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | SEC FILE NUMBER | |-----------------| | 8-42622 | FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Ther eunder | | REPORT FOR THE PERIOD BEGINNING 01/01/20
AND ENDING 12/31/20 | | ~~~~~~~~~~~ | |--------------------------------------------|---------------------------------------------------------------------------|------------|--------------------------------| | | MM/DDIYY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Enerecap Partners, LLC | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | FIRM 1.0. NO. | | 1718 Peachtree Street, NW, Suite 900 | | | | | | (No. and Street) | | | | Atlanta | GA | 30309 | | | (City) | (State) | (Zip Code) | | | Chris Edmonds4 | Nfi:ME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | _
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2780 | | | | | (Area Code - Telephone Number) | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | Ohab and Company, PA | | | | | | | | | | | (Name - if individual, state last, first, middle name) | | | | 100 E. Sybella Avenue, Suite 130, Maitland | | FL | 32751 | | (Address) | (City) | (State) | (Zip Code) | | | | | | | | | | | | IV' I
Certified Public Accountant | | | | | Public Accountant | Accountant not resident in United States or any of its possessions. | | | | B | FOR OFFICIAL USE ONLY | | | | CHECK ONE: | | | | *\*Claims for exemption ji-0111 the requirement that the annual report be covered by the opinion of an independent public acco1111ta11t must be supported by a statement of facts and circumstances relied* 011 *as the basis for the exemption. See Section 240. I 7a-5(e)(2)* > Potential persons who are to respond to the collection of information contained in t his form are not required to respond unless the form displays a currently valid OMB control number. SEC 1410 (11-05) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** I, Christopher Edmonds , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of Enerecap Partners, LLC ~-------- -- ---- --------------------------' as of December 31 are true and correct. 1 further swear (or affirm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as fo llows: | None | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | ,,,,,,"'( '''" L11L111 O "''''' y 11111
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Th is report** contains (check all applicable ~~MH~)\1\''' | | B (a) Facing Page. | | B (b) Statement of Financial Condition. | | D (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). | | | | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capita
l. | | § (d) Statement of Changes in Financial Condition.
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | | | § (g) Computation of Net Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | D U) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule l 5c3-l and the | | Computation for Determi nation of the Reserve Requirements Under Exh
ibit A of Rule l 5c3-3. | | D (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
consolidation. | | B (1) An Oath or Affirmation. | | D (m) A copy of the SIPC Supplemental Report. | | 0 (n) A report describing any material inadequacies found to exist or fou
nd to have existed since the date of the previous audit. | | **For co11ditio11s of co11fide11tia/ treatment of certain portions of this filing, see section 240.17a-5(e)(3). | {2}------------------------------------------------ (A LIMITED LIABILITY COMPANY) FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 AND INDEPENDENT AUDITORS' REPORT {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) 100 E. Sybelia Ave. Suite 130 Maitland, FL 32751 *Certified* Public Acco11111a111s Email: pam@•ohobco.com Telephone 407-740-731 I Fax 407-740-6441 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members' of Enerecap Partners, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Enerecap Partners, LLC as of December 31, 2020, 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 Enerecap Partners, LLC as of December 31, 2020 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of Enerecap Partners, LLC's management. Our responsibility is to express an opinion on Enerecap Partners, 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 Enerecap Partners, 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. We have served as Enerecap Partners, LLC's auditor since 2013. Maitland, Florida February 17, 2021 {4}------------------------------------------------ (A LIMITED LIABILITY COMPANY) #### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 ## **ASSETS** | CURRENT ASSETS: | | |---------------------|--------------| | Cash | \$
88,341 | | Accounts Receivable | 3,638 | | Total Assets | \$
91,979 | | | | ## **LIABILITIES AND MEMBERS' EQUITY** | Total Liabilities and members' equity | \$
91 ,979 | |------------------------------------------------------------------------------|---------------| | MEMBERS' EQUITY | 35,696 | | Total Liabilities | 56,283 | | Due to Parent | 13,811 | | CURRENT LIABILITIES
Accounts payable and accrued expenses (related party) | \$
42,472 | See Independent Auditors' Report and Notes to Financial Statements. 2 {5}------------------------------------------------ NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2'020 #### NOTE 1 - Summary of Significant Accounting Policies ### Nature of Operations In accordance with the Purchase and Sale Agreement ("PSA") dated August 15, 2012, and executed by and between CSG Holdings, LLC ("Holdings") and ERC Holding Corp. ("ERC"), a Delaware corporation, ERC owns 100% of the membership interests of the Company effective January 1, 2013. During January 2013 the Name was changed from Commerce Square Trading, LLC to Enerecap Partners, LLC (the "Company"). The Company is a broker-dealer registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The Company is a Delaware corporation formed on December 31 , 2008 and is a wholly-owned subsidiary of ERC Holding Corp. (the "Parent"). The Company upon closing of the above-referenced acquisition has not initiated new revenue activities. As a result, all revenue received during 2020 is legacy trail fees from hedge funds and commissions received from 12b1 as a result of the activities that occurred prior to purchase by ERC. Enerecap Partners, LLC has been approved for proprietary research, although no revenue was generated or recognized during 2020. #### Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Company maintains its cash balances in an area bank. Cash balances are insured up to \$250,000 per bank by the FDIC or, in the case of credit union deposits, the NCUA. ### Reserves and Custody of Securities The Company currently does not have any customer accounts or Custody of any customer assets. #### Commission Revenue The Company earns revenue from legacy trail fees from hedge funds and 12b-1 fees, both of which are related to performance obligations that have been satisfied in prior periods. #### Income Taxes The Company is a limited liability company and is treated as a partnership for federal and state income tax purposes. The Company does not recognize any tax liability or assets, deferred or current, on the financial statements. The taxable income of the Company is included in the consolidated income tax return of its Parent. The Parent assumes responsibility for all income taxes; therefore, no provision for income taxes is included and there are no uncertain tax positions recognized by the Company. #### Uncertain tax positions The Company has adopted FASB ASC 740-10-25, Accounting for Uncertainty in Income Taxes. The Company will record a liability for uncertain tax positions when it is more likely than not that a tax position would not be sustained if examined by a taxing authority. The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. {6}------------------------------------------------ NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31 , 2020 #### NOTE 1 - Summary of Significant Accounting Policies (continued) #### Uncertain tax positions (continued) The Company's evaluation on December 31 , 2020 revealed no uncertain tax positions that would have a material impact on the financial statements. The 2016 through 2019 tax years remain subject to examination by the IRS. The Company does not believe that any reasonably possible changes will occur within the next twelve months that will have a material impact on the financial statements. #### 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. ### NOTE 2 - 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 a minimum amount of net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the net capital ratio after such withdrawals or payments would exceed 10 to 1. The Company had net capital of \$32,057 and excess capital of \$27,057 as of December 31 , 2020, a net capital requirement of \$5,000, and a percentage of aggregate indebtedness to net capital of 175.57%. ### NOTE 3 - Related Party Transactions The Company is wholly owned by ERC Holding Corp; The Parent assumes responsibility for all income tax liabilities. During the year ended December 31 , 2020, pursuant to a Services agreement between the Company and the Parent, the Company recorded an administrative fee expense of\$12,720. The amount due to the Parent as of December 31, 2020 was \$56,283 relating to expenses recorded by the Company and paid by the Parent. Expenses paid by the parent in addition to the administrative fees were \$13,811 for the year ended December 31, 2020 and are included in various expenses in the statement of operations. ### NOTE 4 - Commitments and Contingencies The Company does not have any commitments or contingencies. {7}------------------------------------------------ NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31 , 2020 #### **NOTE 5 - Subsequent Events** The Company has evaluated subsequent events through February 17, 2021 which is the date that the financial statements were approved and available to be issued. No subsequent events were noted. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.