# FINANCORP GROUP INTERNATIONAL CORPORATION X-17A-5 (2024-03-29) — Broker-dealer annual report
- Company: FINANCORP GROUP INTERNATIONAL CORPORATION
- Form: X-17A-5
- Filed: 2024-03-29
- Period: 2023-12-31
- Accession: 0000895109-24-000002
- CIK: 895109
- File #: 8-45367
- Type: Broker-dealer
- Material weakness: No
- Auditor: Hacker Johnson & Smith PA
- Auditor location: Ft. Lauderdale, FL
- Contact: Nicholas Silva
- Phone: 9543340009
- Email: nsilva@financorpusa.com
- Website: financorpusa.com
- Signed by: Nicholas Silva (CFO- Financial Operations Principal)
Original filing: https://www.sec.gov/Archives/edgar/data/895109/000089510924000002/FGICSFC2023.pdf
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#### **FINANCORP GROUP INTERNATIONAL CORPORATION**
### **STATEMENT OF FINANCIAL CONDITION**
#### **AS OF DECEMBER 31, 2023**
(FILED AS PUBLIC INFORMATION PURSUANT TO RULE 17a-5(d) UNDER THE SECURITIES EXCHANGE ACT OF 1934)
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# **UNITED STATES SECURITIES AND EXCHANGE COMMISSION**
**Washington, D.C. 20549**
0MB APPROVAL 0MB umber: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12
# **ANNUAL REPORTS FORM X-17A-5 PART** Ill
| SEC FILE NUMBER |
|-----------------|
| 8-43567 |
| Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | FACING PAGE | | |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------------------------------------|---------------------------------------------|------------------------------------|
| FILI NG FOR THE PERI OD BEG INNING | ___ 0_1_/_0_1/_2_3 __
MMm~n | | ___
AND END ING | __
1_2_/3_1_/_23
_
MWDDNY |
| | | A. REGISTRANT IDENTIFICATION | | |
| ___ F_i_n_a_n_c_o_rp_
NAME o F FI RM : | | G_r_o_u_p_ln_t_e_rn_a_t_io_n_a_l_C_o_rp_o_r_a_t_io_n | | ______
_ |
| TYPE OF REG ISTRANT (check all applicable boxes):
□ Secu rity-based sw ap deale r
Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | | | □ M ajo r security-based swap partici pant | |
| ADDRESS OF PR INCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | |
| | | 800 Brickell Avenue, Suite 435 | | |
| | | (No . and Street) | | |
| Miami | | Florida | | 33131 |
| (City) | | (State) | | (Zip Code) |
| PERSON TO CONTACT WITH REGARD TO THIS FILI NG | | | | |
| Nicholas Silva | 954-334-0009 | | | nsilva@financorpusa.com |
| (Name) | (Area Code -Telephone Number) | | (Email Address) | |
| | | B. ACCOUNTANT IDENTIFICATION | | |
| INDEPENDENT PUBLI C ACCOUNTANT w ho se repo rts are contained in this filing*
Hacker Johnson & Smith PA | | | | |
| | | (Name - if individual, state last, first, and middle name) | | |
| 500 West Cypress Creek Road Suite 450 | | Ft. Lauderdale | Florida | 33309 |
| (Address) | (City) | | (State) | (Zip Code) |
| 09/29/2003 | | | 400 | |
| | | | (PCAOB Reg;,u,,;,, N,m be,, ;f applkable) I | |
| | | FOR OFFICIAL USE ONLY | | |
| • Claims for exemption from the requirement that the annua l 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 informat ion contained in t his form are not required t o respond unless t he form displays a currently valid 0MB control number.
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#### OATH OR **AFFIRMATION**
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NOTARY P BLIC-STA E
Notary Public |
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No. 01 |
| | This filing•• contains (check all applicable boxes): Ou llfl d In |
| | yComm
(a) Statement of financial condition.
•
-1 |
| | otes to consolldated statement of financial condl ·on.
(b) |
| | (c) Statement of income (loss) or, If there Is o her comprehenslv
ncome In the perlod(s) presented, a statement of |
| | comprehensive Income (as defined In § 210.1-02 of Regulation S-X). |
| | □ (d) Statement of cash flows. |
| CJ
0 | (e) S atem nt of changes In stockholders· or partners· or sole proprietor's equity. |
| | (r) Statement of changes in liabllltles subordinated to claims of creditors.
(g) Notes to consolidated financial stat m nts. |
| | (h) Computation of net capital under 17 CFR 240.1Sc3·1 or 17 CFR 240. lSa•ll. as applicable. |
| | D (i) Computation of tangible net worth und r 17 CFR 240.18a•2. |
| D | OJ Computation for determination of customer 1r serve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3•3. |
| | !:J (k) Computation for determ nation of security-based swap reserve requirements pursuant o Exhibit 8 to 17 CFR 240.1Sc3-3 or |
| | Exhibit A to 17 CFR 240.lSa-4, as applicable. |
| | □ (I) Computation for Determination o PAB Requirements under Exhibit A to§ 240.15c3-3. |
| D | (m) Information relating o possession or contr,ol requir ments for cu stomers under 17 CFR 240.,15c3-3. |
| | D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR
240.1Sc3·3{p)(2) or 17 CFR 240.lSa-4, as applicable. |
| | th computat on of net capital or tangibl net
(o) Reconciliations, Including appropriate explanations, of the FOCUS Report
0 |
| | worth under 17 CFR 240.15c3-l, 17 CFR 240.lSa•l
, or 17 CFR 240.lSa-2. as applicable. and the reserve requirements under 17 |
| | or 17 CFR 240.lSa-4, as appllcable, If material differences exist, or a stat m nt that no mat rial differences
CFR 240.1Sc3- |
| | exist.
D (p) Summary of financial da a for subsidiaries not consolidated in he statement of financial condition. |
| | D (q) Oath or affirmation In accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as appllcable. |
| | :J (r) Compliance report In accordance with 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. |
| 0 | (s) E emption report In accordance with 17 CFR: 240.l7a•S or 17 CFR 240.lSa-7, as applicable. |
| | (t) Independent public accountant's report based on an e amina ·on of the statement of financial conditio |
| | D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17
CFR 240.17a•S, 17 CFR 240.18a•7, or 17 CFR 240.l 7a-12, as appl cable. |
| | :J (v) Independent publ c accountant's report based on an exam na Ion of certain statements In the compl ance report under 17
CFR 240.17a•S or 17 CFR 240.lSa-7, as applicable. |
| | '::J (w) lndep nd nt public accountant's r port based on a revi w of th
x mption r port und r 17 CFR 240.17a•S or 17 |
| | CFR 240.18a•7, as appllcable. |
| | (,c) SUpplemen al reports on applying agreed-upon procedures, In accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12,
as apphcable. |
| 0 | (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 e 1st, under 17 CFR 240.17a-12(k).
:J (z) Other: ___________________________________ |
| | |
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#### **FINAN CORP GROUP INTERNATIONAL CORPORATION**
#### **DECEMBER 31, 2023**
#### **TABLE OF CONTENTS**
| Report oflndependent Registered Public Accounting Firm | 1 |
|--------------------------------------------------------|-----|
| Statement of Financial Condition | 2 |
| Notes to the Statement of Financial Condition | 3-8 |
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# **Repor of lode-p nden Reg· tere-d Pub** *·c* \_ **cco** ~ Firm
**H PA**
o the Bo of Dcrectors 8Jl ock t \_r F~ orpGroup 1 ami F1 da
#### **Opi:nio on the** St **teme** *t* **of Financ ·** 1 **Condition**
genmilly • ·o:n ra ted o . . m confo Imemati oa.l
#### Bas.is for **Opinion**
~ finan<:ial statem . de b manage our ;udn of the fi:Da.ncial
,, s1 C reescr , **1954)** *l* 2·
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### **FINAN CORP GROUP INTERNATIONAL CORPORATION STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023**
#### **ASSETS**
| Cash and cash equivalents | \$
1,402,983 |
|----------------------------------------------------------------------------------|-----------------|
| Marketable trading debt securities | 996,055 |
| Other assets | 10,592 |
| TOTAL ASSETS | \$ 2,409,630 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | |
| LIABILITIES: | |
| Accrued liabilities | \$
137,501 |
| | |
| TOTAL LIABILITIES | \$
137,501 |
| COMMITMENTS AND CONTINGENCIES (Note 6) | |
| STOCKHOLDER'S EQUITY: | |
| \$.01 par value; 100 shares authorized, issued and outstanding
Common stock - | 1 |
| Additional paid-in capital | 1,149,999 |
| Retained earnings | 1,122,129 |
| TOTAL STOCKHOLDER'S EQUITY | \$ 2,272,129 |
| TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | \$ 2,409,630 |
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#### NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Financorp Group International Corporation (the "Company") is a Delaware corporation which was organized on August 27, 1992 and commenced operations in March 1993. The Company was formed primarily to provide investment banking and brokerage services. The Company is a registered brokerdealer and is wholly-owned by Financorp Holdings Corporation ("the Parent"), a company organized and existing under the laws of Delaware.
The Company provides brokerage services on an agency basis, which includes trading in principal transactions. Transactions are made on a fully disclosed basis. The Company's customers are primarily institutional clients or high net worth individuals domiciled in localities outside the United States of America, many of which are affiliated through common ownership. During the year ended December 31, 2022, substantially all the commission income earned by the Company was derived from these affiliates.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities, if any, at the date of the financial statements, and revenue and expenses during the reporting periods. Actual results could differ from those estimates.
*Marketable Trading Debt Securities: In* accordance with Accounting Standards Codification ("ASC") 940 Financial Services-Brokers and Dealers, the Company's investments in U.S. treasury debt securities are carried at fair value with changes in fair value reported in earnings. The security purchases and sales are recorded as of the trade date.
### NOTE 2 - CASH AND CASH EQUIVALENTS
Cash and cash equivalents are defined as short-term, highly liquid investments with original maturities ofless than 90 days. Cash and cash equivalents include amounts held at financial institutions and clearing brokers. Deposits held at financial institutions are insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000.
The Securities Investor Protection Corporation ("SIPC") insures the brokerage accounts with Interactive Brokers to the extent of \$500,000 (including up to \$250,000 for cash). The Company's cash accounts at times exceeds amounts covered by insurance provided by the FDIC and SIPC.
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#### NOTE 2 - CASH AND CASH EQUIVALENTS, continued
At December 31, 2023, cash and cash equivalents of \$96,215 was held in interest-bearing accounts at Centennial Bank and \$1,306,768 at Interactive Brokers.
#### NOTE 3 - NET CAPITAL REQUIREMENTS
The Company is subject to the Securities and Exchange Commission's ("SEC") Uniform Net Capital Rule ("Rule") and has elected to compute its net capital under the Basic Method of this Rule. This Rule requires that the Company maintain minimum net capital, as defined, equal to the greater of \$100,000 or 6-2/3% of aggregate indebtedness, as defined. The Rule also requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2023, the Company had net capital of \$2,257,553 which was \$2,157,553 in excess of its required net capital. The Company's aggregate indebtedness to net capital ratio was .0609 to 1. The Company is exempt from the provisions of SEC Rule 15c3-3 under Paragraph (k) (2) (ii).
#### NOTE 4 - RECEIVABLE FROM AND PAY ABLE TO BROKER
The Company conducts business primarily with one clearing broker on behalf of its customers. The Company earns commissions as an introducing broker for the transactions of its customers which are normally settled on a delivery-against-payment basis. The clearing operations for the Company's customer accounts are performed by its clearing broker pursuant to a clearing agreement.
The Company is subject to credit risk should the clearing broker be unable to remit monthly net commission revenues to the Company.
In the normal course of business, the Company's clearing broker is exposed to risk of loss on customer transactions in the event of customer's inability to meet the terms of its contracts; the clearing broker may have to purchase or sell securities at prevailing market prices in order to fulfill the customer's obligations. The Company has agreed to indemnify the clearing broker for losses that the clearing broker may sustain from the customer accounts introduced by the Company.
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### **FINAN CORP GROUP INTERNATIONAL CORPORATION**
### **Notes to the Statement of Financial Condition At December 31, 2023**
#### NOTE **4** - RECEIVABLE FROM AND PAY ABLE TO BROKER, continued
For the month of December 2023, the Company earned \$164,274 of commission and interest revenue and incurred \$91,412 of clearing expenses. During the month of December 31, 2023, the Company received the net amount of \$72,862 from the clearing broker. Therefore, there is no receivable from the clearing broker at December 31, 2023.
#### NOTE 5 - MARKET ABLE TRADING DEBT SECURITIES
At December 31, 2023, the Company's marketable trading debt securities consists of U.S. treasury debt securities. At December 31,2023, total unrealized gains on marketable trading securities was \$11,134.
Proprietary securities transactions in regular-way trades are recorded on the trade date, as if they had settled. Gains and losses arising from all securities and commodities transactions entered into for the account and risk of the Company are recorded on a trade-date basis.
Financial instruments are recorded at fair value in accordance with GAAP. GAAP defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques.
The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:
• Level **1** inputs are quoted prices (unadjusted) in active markets for identical assets or a liability the Company has the ability to access.
• Level 2 inputs are inputs ( other than quoted prices included within Level 1) that are observable for the asset or liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability.
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#### NOTE 5 - MARKETABLE TRADING DEBT SECURITIES, continued
The following table sets forth by level, within the fair value hierarchy, the Company's marketable securities, at fair value on a recurring basis as of December **31,** 2023:
| | Levell | | Level 2 Level 3 | Total |
|--------------------------|------------|------|-----------------|------------|
| U.S. Treasury securities | \$ 996,055 | \$ - | \$ - | \$ 996,055 |
| Total | \$ 996,055 | \$ - | \$ - | \$ 996,055 |
#### NOTE 6 - COMMITMENTS AND CONTINGENCIES
The Company determines if a contract contains a lease at inception and recognize operating lease rightof-use assets and operating lease liabilities based on the present value of the future minimum lease payments at the Commencement date.
In January 2022, the Company entered into a new lease for office space located in Miami, Florida. The lease is for a period of twelve months and will automatically renew annually unless cancelled by the Company. The office space is being leased from a related party.
The Company is exposed to various asserted and unasserted potential claims encountered in the normal course of business. As of December 31, 2023, and through the date of this report, there were no such claims.
#### NOTE 7 -INCOME TAXES
In accordance with GAAP, deferred income tax assets and liabilities are computed for the differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to reverse.
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#### NOTE 7 - INCOME TAXES, continued
In accordance with GAAP, deferred income tax assets and liabilities are computed for the differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to reverse.
Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable for the period and the change during the period in deferred tax assets and liabilities. Income tax expense of \$47,412 represents current income tax expense of \$47,412 and no deferred tax benefit. The net deferred tax asset included in "other assets" on the statement of financial condition is \$10,592 as of December 31, 2023, and consists of the following:
| Deferred Tax Assets : | Amount |
|---------------------------------|-----------|
| Additional depreciation for tax | \$ 10,592 |
| Net deferred tax asset | \$10,592 |
GAAP requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are more-likely-than-not of being sustained upon examination by the applicable tax authority, based on the technical merits of the tax position, and then recognizing the tax benefit that is more-likely-than-not to be realized.
Tax positions deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current reporting period. Management believes any such positions would be immaterial to the overall financial statements.
The Company's federal and state income tax returns for the years after 2020 remam subject to examination by the taxing authorities.
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#### NOTE 8 - MAJOR CUSTOMERS AND ECONOMIC DEPENDENCE
Five affiliated customers accounted for approximately 99% of the Company's commission revenue for the year. Two are offshore funds and the others are trusts related to the Mendoza family.
### NOTE9-SUBSEOUENTEVENTS
The Company has evaluated subsequent events after December 31, 2023, through March 25, 2024, the date that the financial statements were available to be issued, noting that there were no subsequent events.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.