# AKIN BAY COMPANY LLC X-17A-5 (2024-03-01) — Broker-dealer annual report - Company: AKIN BAY COMPANY LLC - Form: X-17A-5 - Filed: 2024-03-01 - Period: 2023-12-31 - Accession: 0000881810-24-000001 - CIK: 881810 - File #: 8-44363 - Type: Broker-dealer - Material weakness: No - Auditor: Ohab and Company, PA - Auditor location: Maintland, FL - Contact: James B Rybakoff - Phone: 2125839800 - Email: lamesr@akinbay.com - Website: akinbay.com - Signed by: James B Rybakoff (President & CEO) Original filing: https://www.sec.gov/Archives/edgar/data/881810/000088181024000001/PublicABAuditSF2023.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | ANNUAL REPORTS | |----------------| | FORM X-17A-5 | | PART Ill | C·MB APPROVAL 0MB Nurnber: 3235-0123 Expires: ri ov. 30, 2026 Estimated average burden hou:s per response: 12 SEC FILE NUMBER **FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Excti&nge Act of ll.934** FILING FOR THE PERIOD BEGINNING **1/1/2023** MM/DD/YY AND ENDING **12/31/2023** MM/DD/YY **A. REGISTRANT IDENTIFICATION** NAMEOFFIRM : AKlf\l BAY COMPANY LLC TYPE OF REGISTRANT (check all applicable boxes): □ Broker-dealer □ Security-based swap dealer 0 Check here if respondent is also an OTC derivatives dealer □ Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 780 3rd Ave 32nd Floor ( No. and Street) New York **NY** 10017 (City) {State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING JAMES RYBAKOFF (212) 583-9800 ~lamesr@akinbay.com (Name} (Area Code - Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Ohab and Cornpany, PA (:\lame - if individual, state last, first, and middle name) 100 E Sybelia Avenue Maintland FL 32751 (Address) (City) (State) (Zip Code) **FOR OFFICIAL USE ONLY** \* 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-5(e)(1)(ii}, if applicable. Persons who are to respond to the o;,llection of information contained in this form are not required *tc,* res11ond unless the form displays a currently valid 0MB contml number. {1}------------------------------------------------ #### OATH OR AFFIRMATION | James Rybakoff | swear (or affirm) that, to the best of my knowledge and belief, the | | |------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | Itinancial report pertaining to the firm of AKIN BAY COMPANY LLC | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | | 12/31 | , 2023 , is true and correct. I further swear (or affirm) that neither the company nor any | | | as that of a customer. | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | | | Signature: | | |------------------------------------------------------|-------------------------------------------------------|---------------|--| | ﻢ ﺍﻟﻤﺮﺍﺟﻊ | | 40816: | | | | DAVID SANTOS | Profident/CEO | | | | INOTARY PUBLIC, STATE OF NEW YORK!
NO. 01SA6334917 | | | | Notary Public | r QUALIFIED IN NEW YORK COUNTY. ' | | | | This filing ** contains (cherk all annlicable hoves) | . WY COMMISSION EXPRES DEC 28, 2027 ' | | | #### This filing\*\* contains (check all applicable boxes): - (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 in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - O (d) Statement of cash flows. - [ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ {f} Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. - [ {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. - O (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - [ {{} 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. - O (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - [n} Information relating to possession or control requirements for security-based swap customers under 1.7 CFR 240.15c3-3(p){2) or 17 CFR 240.18a-4, as applicable. - O (o) Reconcillations, including appropriate explanations, of the FOCUS Report with computation of net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 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. - | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | - [ {r) Compliance report in accordance 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 240.18a-7, as applicable. - 「] (t) Independent public accountant's report based on an examination of the statement of financial condition. - O (u) Independent public accountant's report based on an examination of the 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. - [ (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. - [ (x) Supplemental reports on applying agreed upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - [ {y) Report describing any material inadequacies 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). - (z) Other: \*\* To request confidential treatment of this filing, see 17 CFR 240.170-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ / /\. 1,, I f'\ I -j\_, \ 1 Cc. ) M l ' \ N \. FINANCIAL ST A TEMENTS AND SUPPLEMENT ARY INFORMATION PURSUANT TO SEC RULE 17a-5 FOR THE YEAR ENDED DECEMBER 31, 2023 This report is deemed CONf/IDENTIAL in accordance with Rule 17a-5(e)(3) under the Securities and Exchange Act of 1934, A swterncnt of financial condition, bound sepanitely, has been filed with the Securities and Exchange Commission simultaneously herewith as a Public Document {3}------------------------------------------------ #### **TABLES OF CONTENTS** #### **FOR THE YEAR ENDED DECEMBER 31, 2023** | | Page | |--------------------------------------------------------|------| | Report oflndependent Registered Public Accounting Firm | l | | Financial Statements | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3-8 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 100 E. Sybelia Ave Suite 130 Maitland, FL. 32751 Certified Public Accountants Fimal\_pain(@air-iber com Telephone 407-740-7311 Fax 407-740-6441 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Member 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, 2023, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial state nent presents fairly, in all material respects, the financial position of Akin Bay Company L.C as of December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This linancial statement is the responsibility of Akin Bay Company LLC's management. Our responsibility is lo express an opinion on Akin Bay Company L.I.C'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 anounts 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 Akin Bay Company LLC's auditor since 2022. Maitland, Florida February 9, 2024 {5}------------------------------------------------ #### **STATEMENT OF FINANCIAL CONDITION** ### **DECEMBER 31, 2023** | Assets | | |------------------------------------------|-----------------| | Cash and cash equivalents | \$
290,383 | | Security deposit | 28,876 | | Property and equipment, net | 103,689 | | Right of lease assets | 586,633 | | Prepaid expenses | 21 ,720 | | Total assets | \$
1,031,301 | | | | | Liabilities and Memher'f' .
Equity | | | Accounts payable and accrued expenses | \$
82,182 | | Lease liability | 670,338 | | Other liabilities | 55,204 | | Total liabilities | 807,724 | | Members' equity | 223,577 | | Total liabilitie.~ and M'emb.ers' Equity | \$
1,031,301 | {6}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED DECEMBER 31, 2023** ## **1. NATURE OF OPERATIONS** Akin Bay Company LLC (the "Company") was Orgc1nized as a limited liability company under the laws ofthe 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 Authority (FINRA) and Securities Investor Protection Corporation (SJPC). The Company primarily engages in providing investment banking and advisory servic:es to its clients. The Company is exempt from rule 15c3-3 ofthc SEC under footnote 74 of that rule. ## **2. SUMMARY OF SJ.GN][FICANT ACCOUNTING POLICIES** # *Basis of Accounting* Revenues and expenses are recorded on the accrual basis of accounting in accordance with accounting principles gt!nerally 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 colh:,cted within one year is recorded as accounts receivable at net realizable value. In this 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. #### *Property 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: | | Lffe | |------------------------|---------------------------| | | Lesser of remaining lease | | Leasehold improvements | term or life: of asset | | Office equipment | 5 | | Furniture and fixtures | 5 | {7}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** # **FOR THE YEAR ENDED DECEMBER 31, 2023** ## **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)** #### *Consulting Fees* The majority of consulting fees are related to independent third pa11:ies providing financial analysis. ## *s;gn{fi,cant J1ufgements* Revenue from contracts with customers includes fees from investment banking. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement is required to det1!rmine whether performance obligations are satislied at 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; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. ## *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, rr::vcnue is recognized over time for advisory arrangements in which the performance obligations an: simultaneously provided by the Company and consumed by the customer. Retainers and other fees received from customers are recognized revenue when the performance 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 fees 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.** ## *Leases* The Company leases certain buildings and vehicles. The determination of whether an arrangement is a lease is made at the lease's inception. Under ASC 842, a contract is ( or contains) a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control i:. defined under the standard as having both the right to oblain substantially all of the economic benefits from use of the asset and the right to direct the use of the asset. Management only reassesse:s its determination if the terms and conditions of the contract are changed. {8}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED DECEMBER 31, 2023** ## **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)** ## *Lea5es (Cont 'd)* Operating leases are included in operating lease right-of-use ("ROU") asseb, other current liabilities, and operating lease liabilities in our balance sheets. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company uses the implicit rate when it is readily determinable. Since most of the Company's leases do not provide an implicit rate, to determine the present value of lease payments, management uses the Company's incremental borrowing rate based on the information available at lease commencement. Operating lease ROU assets also includes any lease payments made and excludes any lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. ## *Income Taxes* The Company is classified as a Partnership for Federal and New York. State tax purposes, whereby the Company's income or loss is reported by the partners on their own income tax returns. Accordingly, no provision has been made for Federal and New York. State taxes. The Company remains I iab le for New York City Unincorporated Business tax. As of Dec ember 3 1, 2 023, the Company's tax years for 2022, 2021, and 2020 are subject to examination by the tax authorities. The Company has evaluated its current tax positions and has concluded that as of December 31, 2023, the Company does not have any significant uncertain tax positions for which a reserve wou Id be necessary. #### *U,;e o,fEstimates* The preparation of financial statements in conformity with generally accepted accounting principles requires management to mak.e estimates and assumptions that affoct the reported amounts of assets and liabilities and disclosures 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. {9}------------------------------------------------ ## **NOTES TO FINANCIAL ST A TEMENTS** ## **FOR THE YEAR ENDED DECEMBER 31, 2023** ## **3. PROPERTY AND EQUIPMENT** The following is **a** surnma,y of property and equipment less accumulated depreciation as of December 3 I , 2023. | Leasehold improvements | \$ | 283,069 | |--------------------------------|---------|-----------| | Furniture and fixtures | | 155,690 | | Vehicle | | 91,728 | | Office equipment | | 27.167 | | | | 557,654 | | Less: accumuluted depreciation | ----+-- | (453,965) | | Property and equipment, net | \$ | 103,689 | Depreciation expense for the year then ended was \$70,184. ## **4. CONCENTRATIONS OF RISK** The Company maintains its cash balances at a major financial institution. The balunces are insured by the Federal Deposit rnsurance Corporation ("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 expos,~d to small amount of risk relating to its out-of-pocket expenses. The risk of default depends on tbe creditworthiness of the customers. It is the Company's policy to review, as necessary, the credit standing of each customer. ## **5. NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule I 5c3- I), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not c:xcc:cd 15 to 1. At December 3 l, 2023, the Company had net capital of \$69,292 which is \$64,292 in excess of its required net capital of \$5,00-0. The Company's net capital ratio at Dec~mber 31, 2023 was 3 to 1. ## **6. RELATED PART][ES** As of December 3 1, 2 023, there were no re lated parties. {10}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** #### **FOR THE YEAR ENDED DECEMBER 31, 2023** ## **7. LEASES** The Company has one otlice space under long-term non-cancelable operating lease agreements. The lease expires on O,:tober 31, 2028 and r,rovide for renewal options ranging from one year to five years. The Company includes in the determination of the right~of-se use assets and lease liabilities any renewal options when the options are reasonably certain to be exercised. Our operating lease provides for increase in future minimum annual rental payments. The weight-average discount rate is based on the discount rate implicit rate in the lease. If the implicit rate is not readily d<::terminable from the lease, the Company estimate an applicahle incremental borrowing rate. The incremental borrowing rate is estimate using our applicable borrowing rates and the contractual lease. The Comr,any has elect1~d the short-term exemption for all leases with a term of 12 months or less for both existing and ongoing operating leases to not recognize the asset and liabllity for the lease. Total right-of-use assets and lease liabilities at December 31, 2023 are as follows: | Lease Assets - | Classification in Statement of Financial Position | | | |----------------|---------------------------------------------------|--|--| | | | | | | Operating right-of-use assets -
Other assets | \$
586,633 | |-------------------------------------------------------------------------|---------------| | Total leased right-of-use assets | \$
586,633 | | Lease Liabilities -
Classification in Statement ofFinancial Position | | | Operating lease liabilities | \$
670,338 | | Total !ease liabilities | \$
670,338 | Total lea~e cost for the year ended December 31, 2023 is \$155,453 The following tale summarizes the supplemental cash flow information for the year ended December 31, 2023: Cash paid for amounts included in the measurement of Iea.~e liabilities Operating cash flows from operating leases \$ 27,626 {11}------------------------------------------------ ## 7. **LEASES (Cont'd)** The following summarizes the weighted-average remaining lease term and weight-average discount rate: | Weighted-average remaining lease tenn in years: | | |-------------------------------------------------|-------| | Operating leases | 4.83 | | | | | Weighted-average discount rate: | | | Operating lea-;es | 7.79% | The future of minimum lease payments under noncancelable operating lease with tcnns greater than one year are listed below: | December J I , | Operating | |-----------------------------------|---------------| | 2024 | 165,760
\$ | | 2025 | 165,760 | | 2026 | 165,760 | | 2027 | 165,760 | | 2028 | 144,338 | | Total lease payments | 807,378 | | Less interest | (137,040) | | Present value of!ease liabilities | 670,338
\$ | ## **8. SUBSEQUENT EVENTS** The Company has evaluated all subsequent events through February 9, 2024 the date which the financial statements were issued. There are no other material effects that will affect financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.