# CORECAP INVESTMENTS, INC. X-17A-5 (2022-03-29) — Broker-dealer annual report - Company: CORECAP INVESTMENTS, INC. - Form: X-17A-5 - Filed: 2022-03-29 - Period: 2021-12-31 - Accession: 0000933048-22-000001 - CIK: 933048 - File #: 8-47783 - Type: Broker-dealer - Material weakness: No - Auditor: Carnaghi & Schwark, PLLC - Auditor location: Roseville, MI - Contact: David Muncie - Phone: 2487841341 - Email: dave.muncie@corecapinv.com - Website: corecapinv.com - Signed by: David W. Muncie (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/933048/000093304822000001/corecapinvaudit2021enh.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 > SEC FILE NUMBER 8-47783 # **ANNUAL REPORTS FORM X-17A-5 PART** Ill **FACING PAGE** **Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING **O 1/01/2021** AND ENDING **12/31/2021** MM/DD/YY MM/DD/VY **A. REGISTRANT IDENTIFICATION** # NAME oF FIRM: CoreCap Investments, LLC TYPE OF REGISTRANT (check all applicable boxes): l:!J Broker-dealer • Security-based swap dealer D 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.) # 27777 Franklin Rd. Ste 700 | Ml
(State)
248-784-1341
(Area Code -Telephone Number)
(Email Address) | 48034
(Zip Code)
dave.muncie@corecapinv.com | |-----------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | Ml | 48066 | | (State) | (Zip Code) | | 3421 | | | | (PCAOB Regl>tratloo Nombec, if applicable) | | | B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Name - if individual, state last, first, and middle name)
Roseville | **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-S(e)(l)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number. {1}------------------------------------------------ ### **OATH OR AFFIRMATION** I, David W. Muncie ------------~ swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of CoreCap Investments, LLC as of 12/31 ----~ 2~, is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, directGr, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. Title: Chief Financial Officer DANIEL MCCARTY Notary Public State of M' h' · 1c ,gar· County Of Macomb My\_Commission Expires 03·2.!i-20;23 Act,ng in the County of *Oc...l(t~J* Signatur~U/~ ## **This filing\*\* contains (check all applicable boxes):** - **!!I** (a) Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - **!!I** (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 flows. - **!!I** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - **!!I** (g) Notes to consolidated financial statements. - **!!I** (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-l, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - **!!I** (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. - D (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. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - **!!I** (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible 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. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - **!!I** (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **!!I** (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **!!I** (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (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. - **!!I** (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (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 exist, under 17 CFR 240.17a-12(k). D(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - *\*\*To* request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ *FINANCIAL STATEMENTS AND SUPPORTING SCHEDULES PURSUANT TO RULE 17A-5 OF THE SECURITIES AND EXCHANGE COMMISSION* *FOR THE YEAR ENDED DECEMBER 31, 2021* {3}------------------------------------------------ ## Financial Statements and Supplementary Information December 31, 2021 # *TABLE OF CONTENTS* PAGE NO. | Report of Independent Registered Public Accounting Firm | 3 | |---------------------------------------------------------|-----------| | FINANCIAL ST A TEMENTS | | | Statement of Financial Condition | 4 | | Statement of Operations | 5 | | Statement of Men1ber's Equity | 6 | | Statement of Cash Flows | 7 | | Notes to Financial State1nents | 8 -
10 | #### SUPPLEMENTARY INFORMATION | Computation of Net Capital Under Rule 15c3-1 of the
Securities and Exchange Commission | 12-13 | |-------------------------------------------------------------------------------------------------|-------| | Computation for Determination of Reserve Requirements
for Broker-Dealer Under Rule 15c3-3 | 14 | | Supplemental Report of the Status of Membership in the
SIPC Pursuant to SEC Rule 17a-5(e)(4) | 15-16 | | Form SIPC-7 General Assessment Reconciliation | 17-18 | | Supplemental Exemption Report Pursuant to SEC Rule l 7a-5 | 19 | | Broker-Dealer Exemption Report | 20 | {4}------------------------------------------------ Anthony L. Carnaghi, CPA Douglas W. Schwark, CPA (586) 779-8010 FAX (586) 771-8970 # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** Board of Directors of CoreCap Investments, LLC Southfield, Michigan #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of CoreCap Investments, LLC, as of December 31, 2021, the related statements of operations, stockholders' equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of CoreCap Investments, LLC as of December 31, 2021, and 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 statements are the responsibility of CoreCap Investments, LLC's management. Our responsibility is to express an opinion on CoreCap Investments, LLC's financial statements 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 CoreCap Investments, 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 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 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. #### **Auditor's Report on Supplementary Information** The computations of net capital and determination of reserve requirements under rule 15c3-1 of the securities and exchange commission have been subjected to audit procedures performed in conjunction with the audit of CoreCap Investments, LLC's financial statements. The supplementary information is the responsibility of CoreCap Investments, LLC's management. Our audit procedures included determining whether the supplementary information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplementary information. In forming our opinion on the supplementary information, we evaluated whether the supplementary information, including its form and content, is presented in conformity with 17 C.F.R. §240.1 ?a-5. In our opinion, the computations of net capital and determination ofreserve requirements under rule 15c3-l of the securities and exchange commission are fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as CoreCap Investments, LLC's auditor since 2014. Roseville, Michigan March 25, 2022 {5}------------------------------------------------ | Cash \$ | I, 187,264 | |------------------------------------------------|-----------------| | Accounts receivable: | | | Brokers, dealers and clearing organizations . | 821,038 | | Deposit -
clearing organizations . | 50,000 | | Sales representatives . | 59,415 | | Related party . | | | Other | 2,785 | | Prepaid expenses ___ | 4~3~0~6~0=5 | | TOTAL ASSETS | \$
2,551,107 | | Accounts payable \$ | | |-------------------------------------|---------| | Commissions payable | 954,418 | | Contingent liability | 50,000 | | Amount due to related parties | 82,003 | | Unsecured debits -------'5~9,_a,.1 | | | | | | Member's equity……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… | .464.095 | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------| | TOTAL LIABILITIES AND MEMBER'S EQUITY | 2 551 107 | {6}------------------------------------------------ | Revenue: | | |-----------------------------|-----------------------| | Commissions \$ | 509,586 | | Investment company shares | 3,233,673 | | Insurance based products | 2,328,087 | | Gain/Loss principal trades | 5,358 | | Interest inco1ne | 2,242 | | Underwriting revenue | 226, I 49 | | Fees earned 12b-l | 3,478,495 | | Other revenue ___ | 4~1~2=8~5=8 | | Total revenue | 10,196,448 | | Operating Expenses: | | | Commission expenses | 8,314,092 | | Clearance fees | 64,904 | | Communications | 193,145 | | Occupancy costs | 27,588 | | Litigation related expenses | 1,735 | | Other operating expenses | __
l~,0~0~8~,6~9=2 | | Total operating expenses | 9,610,156 | | NET INCOME | \$
586.292 | {7}------------------------------------------------ # *STATEMENT OF MEMBER'S EQUITY YEAR ENDED DECEMBER 31, 2021* | | Member's
Equity | |-------------------------------|--------------------| | Balance at January 1, 2021 | \$
877,803 | | Net income . | 586,292 | | Additional capital paid in . | | | Distributions to member | ____
_ | | Balance at December 31, 2021 | \$
1,464.095 | See accompanying notes. {8}------------------------------------------------ # *STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2021* ### *CASH FLOWS FROM OPERATING ACTIVITIES* *Cash and cash equivalents-* End of year | Net income \$ | 586,292 | |--------------------------------------------------|------------| | Adjustment to reconcile net income to net | | | cash provided by operating activities: | | | Changes in: | | | Receivables ( | 408,505) | | Prepaid expenses ( | 63,823) | | Accounts payable ----=-5=13=7,,8=5 | | | Total adjustments | 41 457 | | Net cash provided by operating activities | 627,749 | | CASH FLOWS FROM FINANCING ACTIVITIES | | | Additional capital paid in | _____
_ | | Net cash provided by financing activities | | | NET INCREASE IN CASH | 627,749 | | Beginning of year
Cash and cash equivalents - | 559515 | See accompanying notes. \$ 1 187.264 {9}------------------------------------------------ # *NOTES TO FINANCIAL STATEMENTS* ## **NOTE 1 - ORGANIZATION** CoreCap Investments, LLC (the "Company" or "Core Cap") operates as an introducing brokerdealer clearing its client's transactions on a fully disclosed basis through a clearing broker-dealer. The Company was incorporated in May 2012 and registered with the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) in March 1996. The Company is a wholly owned subsidiary of Core Capital Holdings, LLC. ### **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### **Revenue Recognition** Revenue is recorded when: (i) a contract with a client has been identified, (ii) the performance obligation(s) in the contract have been identified, (iii) the transaction price has been determined, (iv) the transaction price has been allocated to each performance obligation in the contract, and (v) the Company has satisfied the applicable performance obligation. The expenses that are directly related to such transactions are recorded as incurred and presented within operating expenses. Revenue associated with the reimbursement of such expenses are recorded when the Company is contractually entitled to reimbursement and presented within other income. The Company provides transaction related services to its customers. Securities transactions and the related commission revenue and expenses are recorded on a trade date basis. Insurance commissions are recorded when earned. Revenue as disaggregated by source is presented in the accompanying statement of operations. Accounts receivable and contract balances from contracts with customers were as follows. Accounts receivable approximated \$821,000 and \$411,000 as of December 31, 2021 and 2020, respectively. Contract assets were not material as of December 31, 2021 and 2020. Contract liabilities approximated \$1,002,000 and \$487,000 as of December 31, 2021 and 2020, respectively. #### **Management Estimates** The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. #### **Financial Instruments with Off-Balance Sheet Risks** In the normal course of business, the Company's activities involve the execution, settlement and financing of various securities transactions. These activities may expose the Company to offbalance sheet risk in the event the other party to the transaction is unable to fulfill its contractual obligation. {10}------------------------------------------------ # *NOTES TO FINANCIAL STATEMENTS* ### **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** ### **Federal Income Taxes** During April 2020, CoreCap along with its Parent converted from an S corporation to an LLC. As an LLC, the Company is treated as a partnership for Federal income tax purposes. Consequently, Federal income taxes are not payable by, or provided for, the Company. LLC members are taxed individually on their share of taxable earnings. CoreCap's net income or loss is allocated among the members in accordance with the provisions of the Company's operating agreement. The Company recognizes and measures its unrecognized tax benefits in accordance with FASB ASC 740, Income Taxes. The primary objective of ASC 740 is to prescribe measurement and disclosure requirements for income tax provisions when uncertainty exists as to whether the reporting entity's tax positions would be sustained in the event of an examination. Company management believes that there are no material uncertainties in which tax positions taken would not be sustained upon examination. With few exceptions, the Company is no longer subject to U.S. Federal income tax examinations for years before 20 I 8 or state income tax examinations for years before 20 I 7. #### **Subsequent Events** The Company has evaluated events and transactions for potential recognition or disclosure through March 25, 2022 which is the same date the financial statements were available to be issued. #### **NOTE 3 -TRANSACTIONS WITH PARENT COMPANY** The Parent Company provides furniture and fixtures, personnel, general administrative and consulting services to the Company in connection with the Company's business. Reimbursement of these expenses is based on an itemized schedule of amounts paid. For the year ended December 3 I, 2021 charges for services provided by CoreCap Holdings, LLC approximated \$668,000 and are included in other operating expenses in the accompanying statement of operations. #### **NOTE 4 - NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1 ). Based on the provisions of this rule, the Company must maintain net capital equivalent to the greater of \$50,000 or I/15th of aggregate indebtedness, as defined. {11}------------------------------------------------ ## *NOTES TO FINANCIAL STATEMENTS* ### **NOTE 4 - NET CAPITAL REQUIREMENTS (Continued)** At December 31, 2021, the Company's net capital totaled \$968,113 which was \$895,645 in excess of its required net capital of \$72,468. The ratio ofaggregate indebtedness to net capital (which may not exceed 15 to I) was 1. 12 to 1. ### **NOTE 5 - LEASE COMMITMENTS** The Company shares office space with its Parent and other related parties subject to a lease agreement with the Parent. The Company reimburses CoreCap Holdings, LLC on a monthly basis for a portion of occupancy costs which approximated \$2,300 per month as of December 31, 2021. For the year ended December 31, 2021 occupancy expenses for the current and former locations approximated \$27,600 and is included in occupancy costs in the accompanying statement of operations. #### **NOTE 6 - CONTINGENCIES** At December 31, 2021, the Company was subject to a pending Securities and Exchange Commission (SEC) investigation related to supervision of a former registered representative who was terminated on January 23, 2017. The Company has accrued a contingent liability of \$50,000 to cover any potential loss from the outcome of the SEC investigation. The disposition of this matter, in the opinion of management, will not have a material adverse effect on the Company's financial position. #### **NOTE** 7 - **COVID-19 CORONA VIRUS PANDEMIC** The COVID-19 pandemic has had and will continue to have a negative impact on the Company's business, financial condition and operations. The full extent of the impact of COVID-19 is still uncertain. The Company implemented certain initiatives in order to reduce the impact of the pandemic on the Company's financial condition. As the pandemic continues, the extent of impact on the Company's business, financial condition and results of operations will depend on future developments all of which are uncertain and cannot be predicted. As a result, it is not currently possible to ascertain the overall impact of COVID- 19 on the Company's business. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. {12}------------------------------------------------ *SUPPLEMENTARY INFORMATION* {13}------------------------------------------------ • *CORECAPINVESTMENT~LLC* # *COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION* | Total ownership equity | \$
1,464,095 | |----------------------------------------------------------------------------------------------------------|-----------------| | Deduct ownership equity not allowable for net capital | | | Total ownership equity qualified for net capital | 1,464,095 | | Add: | | | Liabilities subordinated to claims of general creditors
a.
allowable in computation of net capital | | | Other deductions or allowable credits
b. | | | Total capital and allowable subordinated liabilities | 1,464,095 | | Deduction and/or charges: | | | Total non-allowable assets from Statement of Financial
a.
Condition | 495,982 | | b.
Other deductions and/or charges | | | Other additions and/or allowable credits | | | Net capital before haircuts on securities positions | 495,982 | | Haircuts on securities (computed, where applicable, pursuant to
Rule 15c3-1 [f]) | | | Net capital | 968,113 | | Net capital requirement | 72,468 | | Excess net capital | \$
895,645 | {14}------------------------------------------------ ![](_page_14_Picture_0.jpeg) # *COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION* # **COMPUTATION OF AGGREGATE INDEBTEDNESS** | Total aggregate indebtedness liabilities | 1,087,012
\$ | |-----------------------------------------------------|-----------------| | Percentage of aggregate indebtedness to net capital | 112% | **Reconciliation with Company's Computation** There is no material difference between the computation of net capital as reported in CoreCap Investments, LLC Part II Amended (Unaudited) FOCUS report dated December 31, 2021 and the above calculations. {15}------------------------------------------------ # *COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS FOR BROKER-DEALER UNDER RULE 15c3-3* CoreCap Investments, LLC is exempt from the Computation for Determination of Reserve Requirements for Broker-Dealers under Rule 15c3-3 of the Securities and Exchange Commission because of exemption provided under Rule l 5c3-3(k)(2)(ii), as a broker-dealer, "who, as an introducing broker-dealer, clears all transactions with and for customers on a fully disclosed basis with a clearing broker-dealer ... ". {16}------------------------------------------------ **Carnaghi & Schwark, PLLC** CERTIFIED PUBLIC ACCOUNTANTS UPTON PROFESSIONAL BUILDING 30435 GROESBECK HIGHWAY ROSEVILLE, MICHIGAN 48066 ANTHONY L. CARNAGHI, CPA DOUGLAS W. SCHWARK, CPA (586) 779-801 0 FAX (586) 771-8970 # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES** To the Board of Directors CoreCap Investments, LLC Southfield, Michigan We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2021. Management of CoreCap Investments, LLC is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating CoreCap Investments, LLC's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2021. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriated for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows: - 1. Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries noting no differences; - 2. Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17 A-5 Part III with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2021, noting no differences; - 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting general assessment payment sufficient to cover liability; - 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and {17}------------------------------------------------ 5. Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed noting no differences. We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to, and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion on CoreCap Investments LLC's compliance with the applicable instructions of the Form SIPC-7 for the year ended December 31, 2021. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the Company and SIPC and is not intended to be and should not be used by anyone other than these specified parties. Roseville, Michigan March 25, 2022 {18}------------------------------------------------ | SIPC-7 | | |----------------|--| | (36-REV 12/18) | | | | | SECURITIES INVESTOR PROTECTION CORPORATION Mail Code: 8967 P.O. Box 7247 Philadelphia, PA 19170-0001 General Assessment Reconciliation ![](_page_18_Picture_3.jpeg) For lhe fiscal year ended **12/31 /21** (Read carefully the instructions in your Working Copy before completing this Form) ### **TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS** 1. Name of Member, address, Designated Examining Authority, 1934 Act registration no. and month in which fiscal year ends for purposes of the audit requirement of SEC Rule 17a-5: | | jcoreCap Investments, LLC
27777 Franklin Rd Ste 700
Southfield, Ml 48034 | 7 | Note: If any of the information shown on the
mailing label requires correction, please -e-mail
any corrections to torm@sipc.org and so
indicate on the form filed. | |-----------|-----------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | FINRA
8-47783 Dec
L | _J | Name and telephone number of person to
contact respecting this form.
David Muncie 248-784-1341 | | | | | | | 2. A. | General Assessment (item 2e from page 2) | | \$1,638 | | B. | Less payment made with SIPC-6 filed (exclude interest)
7/30/21 | | | | | Date Paid | | _________ _ | | | C. Less prior overpayment applied | | ( | | | D. Assessment balance due or (overpayment) | | 812 | | E. | Interest computed on late payment (see instruction E) lor ______ days at 20% per annum | | | | F. | Total assessment balance and Interest due (or overpayment carried forward) | | | | G. | g
PAYMENT:
the
box
malled ✓ to
P .o.
Check
Box
Funds Wired
Total (must be same as F a ove) | •
~
v' 812
_________
AC
________ | _ | | | H. Overpayment carried forward | \$( | _ | | | | | | | | 3. Subsidiaries (S) and predecessors (P) included in this form (give name and 1934 Act registration number): | | | | | The SIPC member submitting this form and the | | | | | person by whom it is executed represent thereby
that all information contained herein is true, correct | | CoreCap Investments, LLC
ame ol Corporallon. Partnership or olher organizalion) | | | and complete. | | | | | | | IAulhorized Slgnalure) | | | Dated the 25th day of February
'2022 . | Chief Financial Officer | (Title) | | | for a period of not less than 6 years, the latest 2 years In an easily accessible place. | | This form and the assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form | | | ffi Oates: | | | | :s:
LU | Received
Postmarked
> Calculations __
_ | Reviewed
__
Documentation
_ | __
Forward Copy
_ | **u** Exceptions: **a.. en** Disposition of exceptions: {19}------------------------------------------------ **DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT** | | _____
Amounts for the fiscal period
beginning
_____
_
and ending
_ | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------| | Item No.
2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030) | Eliminate cents
\$10,196,448 | | 2b. Additions:
(1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and
predecessors not included above. | | | (2) Net loss from principal transactions in securities in trading accounts. | | | (3) Net loss from principal transactions in commodities in trading accounts. | | | (4) Interest and dividend expense deducted in determining item 2a. | | | (5) Net loss from management of or participation in the underwriting or distribution of securities. | | | (6) Expenses other than advertising, printing, registration fees and legal lees deducted in determining net
profit from management of or participation in underwriting or distribution of securities. | | | (7) Net loss from securities in investment accounts. | | | Total additions | | | 2c. Deductions:
( 1) Revenues from the distribution of shares of a registered open end investment company or unit
investment trust, from the sale of variable annuities, from the business of insurance, from investment
advisory services rendered lo registered investment companies or insurance company separate
accounts, and from transactions in security futures products. | 9,039,255 | | (2) Revenues from commodity transactions. | | | (3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with
securities transactions. | 64,904 | | (4) Reimbursements for postage in connection with proxy solicitalion. | | | (5) Net gain from securities in investment accounts. | | | (6) 100% of commissions and markups earned from transactions in (I) certificates of deposit and
(ii) Treasury bills, bankers acceptances or commercial paper that mature nine months or less
from issuance date. | | | (7) Direct expenses of printing advertising and legal fees incurred in connection with other revenue
related to the securities business (revenue defined by Section 16(9)(L) of the Act). | | | (8) Other revenue not related either directly or indirectly to the securities business.
(See Instruction C): | | | (Deductions in excess of \$100,000 require documentation) | | | (9) (i) Total interest and dividend expense (FOCUS Line 22/PART IIA Line 13,
345
_________
Code 4075 plus line 2b(4} above) but not in excess
\$
of total interest and dividend income. | _ | | _________
(ii} 40% of margin interest earned on customers securities
\$
accounts (40% ol FOCUS line 5, Code 3960). | _ | | Enter the greater of line (i) or (ii} | 345 | | Total deductions | 9,104,504 | | 2d. SIPC Net Operating Revenues | \$1,091,944 | | 2e. General Assessment@ .0015 | \$1,638 | (to page 1, line 2.A.) {20}------------------------------------------------ Anthony L. Carnaghi, CPA Douglas W. Schwark, CPA (586) 779-8010 FAX (586) 771-8970 # **EXEMPTION REPORT IN ACCORDANCE WITH RULE 17a-5** # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** Board of Directors CoreCap Investments, LLC Southfield, Michigan We have reviewed management's statements, included in the accompanying Exemption Report in which, (1) CoreCap Investments, LLC identified the following provisions of 17 C.F.R. subsection I 5c3-3(k) under which CoreCap Investments, LLC claimed an exemption from 17 C.F.R. subsection 240. l 5c3-3: k(2)(ii) (the "exemption provisions") and (2) CoreCap Investments, LLC stated that CoreCap Investments, LLC met the identified exemption provisions throughout the current fiscal year without exception. CoreCap Investments 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 CoreCap Investments, LLC's compliance with the exemption provisions. A review is substantially 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 on the provisions set forth in paragraph (k)(2)(ii) of rule l 5c3-3 under the Securities Exchange Act of 1934. Roseville, Michigan March 25, 2022 {21}------------------------------------------------ ## **CorcCap Investments, LLC Exemption Report Prepared Pursuant to Securities and Exchange Act of 1934 Ruic 17a-5, Subsection 240.17a-5(d)(l) and (4) of the U.S. Securities and Exchange Commission December 31, 2021** ### **CorcCap Investments, LLC Exemption Report** The following statements are made to the best knowledge and belief of David Muncie as chief financial officer of CoreCap Investments, LLC: I, David Muncie, as the chief financial officer of CoreCap Investments, LLC, (the Company) am responsible for complying with 17 C.F.R. Section 240.17a-5, ("Reports to be made by certain brokers and dealers") and complying with 17 C.F .R. Section 240.15c3-3(k) (the "exemption provisions"). I have performed an evaluation of the Company's compliance with the requirements of 17 C.F.R. Section 240. l 7a-5 and the exemption provisions. Based on this evaluation, I assert the following: The Company claimed exemption from 17 C.F.R. Section 240.15c3-3 under the following provisions of 17 C.F.R. Section 240.15c3-3: (k)(2)(ii). The Company met the identified exemption provisions in 17 C.F .R. Section 240.15c3-(k) throughout the most recent fiscal year ended December 31, 2021 without exception. I, David Muncie, affirm that, to the best of my knowledge and belief, this Exemption Report is true and correct. Signature Title Date Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.