# AKIN BAY COMPANY LLC X-17A-5/A (2021-03-31) — Broker-dealer annual report
- Company: AKIN BAY COMPANY LLC
- Form: X-17A-5/A
- Filed: 2021-03-31
- Period: 2020-12-31
- Accession: 0000881810-21-000005
- CIK: 881810
- File #: 8-44363
- Material weakness: No
- Auditor: BK Accountants CPAs, PLLC
- Auditor location: Sunnyside, NY
- Contact: james Rybakoff
- Phone: 2125839800
- Signed by: james Rybakoff (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/881810/000088181021000005/PublicAudit2020.pdf
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**UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
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> SEC FILE NUMBER **e-44363**
# **ANNUAL AUDITED REPORT FORM X-17A-5 PARTIII**
**FACING PAGE**
Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder
| | Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | | | |
|--------------------------------------------------------------------------------------------|---------------------------------------------------------------------|---------------|--------------------------------|--|
| REPORT FOR THE PERIOD BEGINNING | O 1/01/2020 | AND ENDING | 12/31/2020 | |
| | MM/DD/YY | | MMIDO/YY | |
| | A. REGISTRANT IDENTIFICATION | | | |
| NAME OF BROKER-DEALER: Akin Bay Company LLC | | | OFFICIAL USE ONLY | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | FIRM I.D. NO. | | |
| 780 3rd Ave 32nd Fl. | | | | |
| | (No and Street) | | | |
| New York | NY | | 10017 | |
| (C'ity) | (Slate) | (Zip Code) | | |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN RF.GARD TO THIS REPORT
James Rybakoff | | | | |
| | | | (Area Code - Telephone Number) | |
| | B. ACCOUNTANT IDENTIFICATION | | | |
| [NDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | |
| BK Accountants CPAs, PLLC | | | | |
| | (Natne - if individual,,,.i, la,t, f1rsl, middle name) | | | |
| 48-19 43rd Avenue | Side
Sunn | NY | 11104 | |
| (Adclrc~~) | (City) | (State) | (Zip Code) | |
| CHECK ONE: | | | | |
| /
I certified Public Accountant | | | | |
| Public Accountant | | | | |
| B | Accountant not resident in United States or any of its possessions. | | | |
| | POR OFPICIAL USE ONLY | | | |
| | | | | |
*"'Claims for exemplionfrom the requirement that the annual report be covered by the opinion of an independent public accountant must be supported b)I a statement of facts and circumstances relied on as the basis for the exemption. See Section 140.17a-5(e)(2)*
SEC 1410 (11-05)
**Potential persons who are to respond to the collection of Information contained in this form are nol required to respond unless the form displays a currently valld 0MB control number.**
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#### **OATH OR AFFIRMATION**
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, swear (or affirm) that, to the best of
my knowledge and belief the accompanying financial statement and supporting schedules pertaining lo the firm of
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Akin Bay Company LLC
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. 20 20 -·--' are true and correct. l further swear (or affirm) that
of December 31
neither the company nor any 1)artncr, proprietor, principal officer or director has any proprietary interest in any account
classified solely as that of a customer, except as fol lows:
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This report*"' contains (check all applicable boxes):
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0 (c) Statement of Income (Loss) or, iftherc is other comp<~Je~h~rre~~the period(s) presented, a Statement
of Comprehensive lncome (as defined in §210.1-02 of ~~Hijfii#I~,~).
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✓ (d) Statement of Changes in financial Condition.
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(f) Statement or· Changes in Liabilities Subordinated to Claims of Creditors.
✓ (g) Computation of Net Capital. | |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|
| | as |
| | · |
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| (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
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(i) Information Relating to the Possession or Control Rcqui re men ts Under Rule I 5cJ-'.l. | |
| 0 U) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule ! 5c3-l and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l ,foJ-3. | |
| 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
consolidatiCln. | |
| § (I) An Oath or Affirmation.
(m) A copy of the SJPC Supplemental Report. | |
| (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | |
*\*\*For condition.f of confldenlial lreatmenl of certain portions of thisfi/ing, see section 240. I 7a-5(e) (3).*
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# **AKIN BAY COMPANY LLC**
STATEMENT OF FINANCIAL CONDITION AND RELATED NOTES AT DECEMBER 31, 2020
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## AKIN BAY COMP ANY LLC TABLE OF CONTENTS FOR THE YEAR ENDED DECEMBER 31, 2020
| | Page |
|---------------------------------------------------------|------|
| Report of Independent Registered Public Accounting Firm | |
| Financial Statements | |
| Statement of Financial Condition | 2 |
| | |
| Notes to Financial Statements | 3-7 |
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#### 18-19 43"1Avcnuc Sunnyside, NY 11104 WWW.BKPARTN ERSCPAS.COM (718} 392 0240
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING **FIRM**
To the Members of Akin Bay Company, LLC
#### **Opinion on the Financial Statement**
We have audited the accompanying statement of financial condition of Akin Bay Company, 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 Akin Bay Company, 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 Akin Bay Company, LLC's management. Our responsibility is to express an opinion on Akin Bay Company, 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 Akin Bay Company, 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 seNed as Akin Bay Company, LLC's auditor since 2014.
Sunnyside, NY
February 25, 2021
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## **AKIN BAY COMPANY LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020**
| Assets | |
|---------------------------------------------------------|---------------|
| Cash and cash equivalents | \$
169,547 |
| Property and equipment, net of accumulated depreciation | 200,636 |
| Right of lease asset | 360,719 |
| Security deposit | 45,732 |
| Prepaid expenses | l 0,000 |
| Other assets | 5,625 |
| Total Assets | \$
792,259 |
| Liabilities and Members' Equity | |
| Accounts payable | \$
17,717 |
| Accrued expenses | 23,874 |
| Lease liability | 428,688 |
| Paycheck protection program loan | 37,900 |
| Total Liabilities | 508,179 |
| Members' equity | 284,080 |
| Total Liabilities and Members' Equity | \$
792,259 |
See accompanying notes to Statement of Financial Condition.
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## **1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
#### *Namre o[Operations*
Akin Bay Company LLC (the "Company") was organized as a limited liabilHy company under the laws of the State of New York on June 19, 1996. The Company is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authol'ity (FINRA) and Securities Investor Protection Corporation (SJPC). The Company primarily engages in providing investment banking and advisory services to its clients. The Company is exempt from rule 15c3-3 of the SEC under paragraph (k)(2)(i) of that **rule.**
#### *Basis o[Accounting*
Revenues and expenses are recorded on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.
#### *Cash and Cash Equivalents*
The Company considers all highly liquid investments, with original maturities of three months **or** less when purchased to be cash equivalents.
#### *Accounts Receivable*
Investment banking income due but not yet received that is expected to be collected within one year is recorded as accounts receivable at net realizable value. In the situation the transaction closes but there are certain contingent milestones, the Company will not record, the receivable until all contingencies are met. If amounts become uncollectible, they will be charged to operations when that determination is made.
#### *Pronerty and Equipment*
Property and equipment are recorded at cost. Depreciation for property and equipment is provided using the straight-line method for financial reporting purposes at rates based on the following estimated useful lives;
| Years |
|-----------------------|
| Lesser of remaining |
| lease term or life uf |
| asset |
| 5 |
| 5 |
| |
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## **1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)**
#### *Revenue Recognition*
The Company provides investment banking and advisory services. Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangements is completed (the closing date of the transaction).
For certain contracts, revenue is recognized over time for advisory arrangements in which the perfonnance obligations are simultaneously provided by the Company and consumed by the customer. Retainers and other fees received from customers are recognized revenue when the perfommnce obligation for providing advisory services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by **the** Company. **At** year end, no deferred revenue or open contracts exist.
Advisory foes and services include financial analysis, structuring of capital, presentations and strategy for raising capital. Investment banking usually cover some of the same services and closing a transaction, such as raising debt or M&A.
For the year ended December 3 l, 2020, the Company earned advisory fees and investment banking related revenues totaling \$192,973 and \$0, respectively.
#### *leases*
The Company leases certain buildings and vehicles. The 283,069 |
|--------------------------------|---------------|
| Office equipment | 20,610 |
| Furniture and fixtures | 127.923 |
| | 431,602 |
| Less: accumulated depreciation | 230,966 |
| | \$ 200,636 |
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#### **3) CONCENTRATIONS OF RISK**
The Company maintains its cash balances at a major financial institution. The balances are insured by the Federal Deposit Insurance Cotporation ("FDIC") up to \$250,000. The Company from time to time, has had an amount greater than \$250,000 in cash on deposit.
The Company engages in various investment banking and advisory services. In the event customers do not fulfill their obligations, the Company may be exposed to small amow1t of risk relating to its out-of-pocket expenses. The risk of default depends on the creditworthiness of the customers. It is the Company's policy to review, as necessary, the credit standing of each customer.
#### **4) COMMITM!i:NTS**
The Company leases its office space under the terms of a non-cancelable operating lease expiring on June 29, 2023. The Company also leases an automobile under a non-cancelable operating lease expiring on September 30, 2023.
The Company has a cash deposit of \$45,732 for the oflice lease.
Future minimum lease payments under the non-cancel able leases are as follows:
| Year ending
December 31, | Rent | Automobile |
|-----------------------------|---------------|--------------|
| 2021 | 182,336 | 17,090 |
| 2022 | 182,336 | 17,090 |
| 2023 | 9l.l 68 | 8,555 |
| Total | \$
~~~. ~Q | \$
~2,132 |
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## **S) NET CAPITAL REQUIREMENTS**
The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule l 5c3-l ), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indehte