# ENERECAP PARTNERS, LLC X-17A-5 (2022-03-29) — Broker-dealer annual report - Company: ENERECAP PARTNERS, LLC - Form: X-17A-5 - Filed: 2022-03-29 - Period: 2021-12-31 - Accession: 0000863317-22-000001 - CIK: 863317 - File #: 8-42622 - Type: Broker-dealer - Material weakness: No - Auditor: Ohab and Company, PA - Auditor location: Maitland, FL - Contact: Brent Hippert - Phone: 443-541-8400 - Email: cedmonds@enerecap.com - Website: enerecap.com - Signed by: Brent Hippert (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/863317/000086331722000001/ene_fs2021-ve.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL REPORTS FORM X-17A-5 PART Ill | M.AB APPROVAL | | |---------------------------|--| | OMB Nimber: 3235-0123 | | | Expires: Oct. 31, 2023 | | | Estimat ed average burden | | | hours per response· 12 | | SEC f'llf NUMBER 8-4622 FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under t he Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING Q 1/01 /21 MM/00/YY AND ENDING 12/31 /21 ~~~~~~~~~ MM/OD/YY A. REGISTRANT IDENTIFICATION NAME oF FIRM: Enerecap Partners, LLC lYPE OF REGISTRANT (check all applicable boxes): ii Broker-dealer 0 Security-based swap dealer 0 Check here if re,spondent is olso *on* OTCderivotive3 dealer D Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 1718 Peachtree Stree, NW Suite 900 (No. and Street) Atlanta GA (City) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 30309 (2lp Code) Chris Edmonds 404-973-2780 cedmonds@enerecap.com (Name) (Area Code - Telephone Number) (Email Address) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* OHAB AND COMPANY, PA {Name - if individual, state last, first, and middle name) 100 E SYBELIA AVE, SUITE 130 MAITLAND FL 32751 (Address) (City) (State) (Zip Code) JULY 28, 2004 1839 (Date of R-egistration with PCAOB)(if appllcable) (PCAOB Registration Number, if aoolicable) S:OR OS:FICIAL USE ONLY \* c1a·ms for exemption from the requirement tllatthe annual reports be covered by the reports of an Independent public accountant must be s1Jpported by a statement of facts and circumstances retied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l}(ll), If applicable. Persons who are t o respond to the rollection of Information contained In this form are not required to respond unless the form displays a currently valid OMB control number. {1}------------------------------------------------ #### OATH OR AFFIRMATION | 1. Brent Hippert | |------------------| | | I, Brant Hippert swear (or affirm) that, to the best of my knowledge and beEief, the financial report pertaining to the firm of Enerecop Portnors, LLC as of Oecembtr 31 2~ is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or et1ulvalent person~ as the case may be, has any proprietary interest in any account classified solely | KATHLEEN MCNEAL SHEELER | |------------------------------------| | Notary Public: | | Baltimore County | | Maryland | | My Commigsion Expiras Oct 06, 2021 | n tle: CFO Notary Publlc #### This filing\*\* contains (check a II applicable bo)(es): - (a) Statement of financial condition. - 0 (b) Notes t<> 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 nows. - **ii** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - 0 (f) Statement of changes in liabilities subordinated to daims of creditors. - **ii** (g) Notes *to* consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.1SC3-l or 17 CFR 240.lSa-1, a\$ applicable. - 0 (i) Computation of tangible net worth under 17 CFR 240. l&a-2. - 0 Ol Computation for dete.rmi nation of customer reserve requirements pursuant to Exhibit A t o 17 nR 240.15c3-3. - 0 (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. - 0 (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c:3-3. - **ii** (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - 0 (n) Information relating to possession or control requirement s for security-based swap customers under 17 CFR 240.15c3-3.(p)(2) or 17 CFR 240.18a-4, as applicable. - **ii** (o) Reconc liations, Including appropriate explanations, of t he FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3·1, 17 CFR 240.18a·l, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.1S.c3-3 or 17 CFR 2 40.18a-4, as app lrcable, if matenal differences exist, or a statement t hat no material differences exist. - 0 (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.lSa-7, as applicable. - 0 (r) Complia nee report in ace<>rdance 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 2:40.18a-7, as applicable. - 0 (t) Independent public acco11.1ntant'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 240.17 a-5, 17 CFR 2.W.18a-7. or 17 CFR 240.17a-12. as aoolicable. - 0 (v) Independent public accountant's report based on an examination of certain statements in the compliance report uncfler 17 CFR 240.17 a·S or 17 CFR 240.18a·7, as applicable. - **iii** (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR240.18a-7, as applicable. - 0 (x) Supplemental reports on applying agreed-upon procedures:, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-U, as applicable. - 0 (y) Report describing any material inadequacies found to exist or foun2 | | |
Statement of Operations
3 | | | Statement of Changes in Members· Equity 4 | | | Statement of Cash Flows
. 5 | | | Notes to Financial Statements _ _ 6-8 | | | Supplementary Schedule I - Computation -0f Net Capital
. 9
Under Rule 15c3-1 of the Securities and Exchange Commission | | | Supplementary Schedule 11 ·Computation for Determination of Reserve Requirements
10
and Information Related to Possession and Control Requirements
Under Rule 15c3-3 of the Securities and Exchange Commission | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 100 E. Sybelia Ave. Suite 130 Maitland, FL327SI *Certified Public Accountants* Email: paml@ohabco.com Telephone 407-740-7311 Fax 401-740-6441 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members' of Ene1ecap Partners, LLC ### Opinion on the Ananclal Statements We have aiudited the accompanying statement of financial condition of Enerecap Partners, LLC as of December 31, 2021 , the related statements of operations, changes in members' equity, end cash flows for the year then ended, and the related notes and schedu les {collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Enerecap Partners, LLC as of December 31, 2021 , arld 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 statemenls are the responsibility of Enerecap Partners, LLC's management. Our resp0nsibilfy is to express an opinion on Enerecap Partners, LLC's financial s tatements based on our audit. We are a public accounting firm registerecl 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 perlorm 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 1inancial 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 statemenls. We believe that our audit provides a reasonable basis for our opinion. #### Auditor's Report on Supplemental lnro:rmatlon The Schedules I and II have been subjected to aud~ procedures performed in conjunction with the audit of Enerecap Partners. LLC's financial statements. The supplemental information is the responsibility of Enerecap Partners, LLC's management. Our audit procedures included determining whether the supplemental information reconcles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy ()f the information presented in the supplemental information. In forming our opinion on the supplemental Information, we eva,uated whether the supplemental information, including its form and conternt, is presented in conformity with 17 C.F.R. §240.17a-5. Jn our opinion, the Schedules I and II are iairly stated, in all material respects, in relation to the financial statements as a whole. Ohab and Company, PA we have served as Enerecap Partners, LLC's auditor since 2013. Maitland, F lorida March 15, 2022 {5}------------------------------------------------ (A LIMITED LIABILITY COMPANY} #### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021 ## **ASSETS** | CURRENT ASSETS:
Cash | \$
61,134 | |-------------------------|---------------| | Total Assets | \$
61 ,134 | | | | | | | | | | | 25, 192 | |---------------| | 22,856 | | 48.048 | | 13,086 | | \$
61, 134 | | \$ | {6}------------------------------------------------ # **Enerecap Partners, LLC** (A LIMITED LIABILITY COMPANY) #### **STATEMENT OF OPERAT IONS FOR THE YEAR ENDED DECEMBER** 31, **2021** #### **REVENUE** | Trail commissions and fees
Interest Income | \$
5,249
52 | |-----------------------------------------------|-------------------| | TOT AL REVENUE | 5,301 | | OPERATING EXPENSES: | | | Service agreement expense (related party) | 12,720 | | RegLJlatory fees | 2,136 | | Professional fees | 13,000 | | Other Operating Expenses | 54 | | T otal expenses | 27,910 | | NET lt-.ICOME (LOSS) | \$
(22,609) | {7}------------------------------------------------ (A LIMITED LIABILITY COMPANY) #### STATEMENT OF CHANGES IN MEMBERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 2021 | MEMBERS' EQUITY, JANUARY 1, 2021 | \$
35,695 | |-------------------------------------|--------------| | Net income (loss) | (22,609) | | Additional Capital | | | MEMBERS' EQUITY, DECEMBER 31 , 2021 | \$
13,086 | {8}------------------------------------------------ ### STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2021 #### OPERATING ACTIVITIES: | Net income (loss) | \$
(22,609) | |-----------------------------------------------------------------------------------------|----------------| | Adjustments to reconcile net income (loss) to net cash
used by operating activities: | | | Accounts Receivable | 3,638 | | Accounts Payable | (17.280) | | Due to Parent | 9,045 | | Net cash used by operating activities | (27,206) | | FINANCING ACTIVITIES | | | Member's Contribution | | | Net cash provided by financing activities | | | NET lt-.ICREASE IN CASH | (27,206) | | CASH AT BEGINNING OF YEAR | 88,340 | | CASH AT END OF YEAR | \$
61.134 | {9}------------------------------------------------ NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2021 #### 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 Au1hority (FINRA). The Company is a Delaware corporation formed on December 31. 2008 and is a wholly-owned subsidiary of ERC Holding Corp. (the "Paren t"). The Company upon closing of the above-referenced acquisition has not initiated new revenue activities. As a result, all revenrue received during 2021 is legacy trail fees from hedge funds and commissions received from 12b1 as. a result of the activities that occurred prior to purchase by ERG. Enerecap Partners, LLC has been approved for proprietary research, although no revenue was generated or recognized during 2021. #### 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, iin the case of credit union deposits, the NCUA. #### Reserves and Custody of Securities The Company currently does not have any customer accoun1s or Custody of any customer :assets. #### Commission Revenue The Company earns revenue from legacy trail fees from he< 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. {10}------------------------------------------------ NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2021 #### NOTE 1 - Summary of Significant Accounting Policies (continued) #### Uncertain tax pos itions (continued) The Company's evaluation on December 31 , 2021 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. #### Recently Adopted Accounting Guidance Effective January 1, 2018, the Company adopted ASU 2014-09, which provides guidance on the recognition of revenues from contracts and requires gross presentation of certain contract costs. This change was applied prospectively from January 1, 2018, and there was no impact on our previously presented results. The adoption of the new revenue standard resulted in no change to beginning members' equity. #### Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of Ameri ca requires management to make estimates and assumptions that affect the reported amounts of assets ancl 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 ammunt of net capital and requires that the ratio of aggreg ate 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 pa id if the net capital ratio after such withdrawals or payments would exceed 10 to 1. T he Company had net capital of \$13.086 and excess capital of \$8.086 as of December 31 , 2021, a net capital requirement of \$5,000. and a percentage of aggregate indebtedness to net capital of 367.15%. #### 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 , 2021, 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, 2021 was \$48,048 relating to expenses recorded by the Company and paid by the Parent. Expenses paid by the parent in addition to the administrative fees were \$15, 13.6 for the year ended December 31 , 2021 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. {11}------------------------------------------------ NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2021 #### **NOTE 5 - Company Continuation** The Company had a loss year ending December 2021 . Company's Parent has agreed to provide additional capital to Company as necessary for it to continue to operate and maintain compliance with minimum net capital requirements. Management expects Company to continue as a going concern and Company financial statements have been p repared on a going concern basis without adjustments for realized costs in the event the Company ceases to continue as a going concern. #### **NOTE 6 - Subsequel'lt Events** The Company has evaluated subsequent events through which is the date that the financial statements were approved and available to be issued. No subsequent events were noted. {12}------------------------------------------------ (A LIMITED LIABILITY COMPANY) #### SCHEDULE 1 COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2021 | TOTAL MEMBERS' EQUITY QUALIFIED FOR NET
CAPITAL | \$
13,086 | |-----------------------------------------------------|--------------| | DEDUCTIONS AND/OR CHARGES | | | Non-allowable assets:
Accounts receivable | | | NET CAPITAL | \$
13,086 | | AGGREGATE INDEBTEDNESS | | | Accounts payable and accrued expenses | 48,048 | | Total aggregate indebtedness | \$
48,048 | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | | | Minimum net capital reQuired | 5,000 | | Excess net capital | \$
8,086 | | Excess net capital at 1,000 percent | \$
7,086 | | Percentage of aggregate indebtedness to net capital | 367.17% | There are- no material differences between the prededing ce>mputation and the Company's corresponding, unaudited part II of Form X-17A-5 as ofDecember31, 2021 . {13}------------------------------------------------ (A LIMITED LIABILITY COMPANY} #### SCHEDULE 2 COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS AND INFORMATION RELATED TO POSSESSIO N AND CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES ANO EXCHANGE COMMISSION AT DECEMBER 31, 2021 The Company is not c laiming an exempt ion from SEA Rule 15c3-3, in reliance on footnote 74 to SEC Release 34-70073 and as discussed in Q&A 8 of the related FAQ issued by SEC staff. In order to avail itself of this option , the Company has rep resented that it does not, and will 111ot, hold custo mer funds or securities. 10 {14}------------------------------------------------ ![](_page_14_Picture_0.jpeg) 100 E. Sybelia Ave. Suite 130 Maitland, FL 32751 *Certified Public Acco11ntant.s* Emaj!: pam@oh:ibco.com Telephone 407-740. 7311 Fax 407-74G-644 I #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members' of Enereca p Partners, LLC We have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report pursuant to SEC Rule 17a-5, In which (1) Enerecap Partners, LLC (the Company) did not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and (2) the Company is filing this Exemption Report relying on Footnote 74 of the SEC R elease No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a·5 because the Company limits tts business activities exclusively to effecting securities transactions via subscnptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; recelvlng the transaction-based compensation 1or Identifying potential merger and acquisition opportunities for cllents, referring securities transactions to other broker-dealers, or provlcdlng technology or platform services; participating in distributl ons of secvri tie~ (Qther tti~n firlll c,;;ommitment undervvr Ung~). In ~Q~itiQn, the Company did not direJctly or indirectly receive, hold. or otherwise owe funds or securities for or to customers, other than money or ot her consideration received and promptly tran:smitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds rece:ived and promptly transmitted for effecting transactic:>ns via subscrip.tions on a subscription way basis where the iunds are payable to the issuer or its agent and not to the Company: did not carry accounts of or for customers; and did not carry PAS accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Enerecap Partners, LLC's management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, Included inquiries and other required procedures to obtain evidence about Enerecap !Partners. LLC's compliance with the exemption provisions. A review is substantial y less in scope than an examination. the objective of which is the expression of an opinion on management's statements.Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based upon the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting .amendments to 17 C.F.A. § 240.17a·5, and related SEC Staff Frequently Asked Questions. ~~ ~·"~ Ohab and Company, PA Maitland, Florida March 15, 2022 {15}------------------------------------------------ #### **Exemption Report** Enerecap Partners, LLC, (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made lby certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-S(d}(1) and (4 ). To the best of ls knowledge and belief, the Company states the following: (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. § 240.15c3-3, and (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No.34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to (1) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; (2)receiving transaction-based compensation for klentifying potential merger and acqLisition opportunities for clients, referring securities transactions to other broker-dealers, or providing technology or platform services; (3) participating in distributions -0f securities (other than firm commitment underwritings) in accordance with the requirements of paragraphs (a) or (b)(2) of Rule 15c2-4; and the Company (1) dd not drectly 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 RU9 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds a re payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers;and (3) dd not carry PAB account s (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Enerecap Partners,LLC I. BrentHippert, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. 073.;y~~ March 9, 2022 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.