# CORECAP INVESTMENTS, LLC X-17A-5 (2024-03-28) — Broker-dealer annual report
- Company: CORECAP INVESTMENTS, LLC
- Form: X-17A-5
- Filed: 2024-03-28
- Period: 2023-12-31
- Accession: 0000933048-24-000004
- 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 Muncie (Chief Financial Officer)
Original filing: https://www.sec.gov/Archives/edgar/data/933048/000093304824000004/CoreCapInvestmentsLLC2023ocr.pdf
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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
Expires: Oct. 31, 2023 Estimated average burden
# **ANNUAL REPORTS FORM X-17A-5 PART** Ill
| hours per response:
12 |
|---------------------------|
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| SEC FILE NUMBER |
| 8-47783 |
0MB APPROVAL 0MB Number: 3235-0123
**FACING PAGE**
**Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934**
| FILING FOR THE PERIOD BEGINNING O 1/01 /23 | | AND ENDING 12/31 /23 | | | |
|--------------------------------------------|----------|----------------------|----------|--|--|
| | MM/DD/YY | | MM/DD/VY | | |
| A. REGISTRANT IDENTIFICATION | | | | | |
| NAME oF FIRM: CoreCap Investments, LLC | | | | | |
TYPE OF REGISTRANT (check all applicable boxes):
0 Broker-dealer D Security-based swap dealer □ Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
# 27777 Franklin Rd. Ste 700
| | (No. and Street) | | |
|-------------------------------------------------------------------------------------------------------|------------------------------------------------------------|----------------------------|----------------------------------------------|
| Southfield | Ml | | 48034 |
| (City) | (State) | | (Zip Code) |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | |
| David Muncie | 248-784-1341 | dave.muncie@corecapinv.com | |
| (Name) | (Area Code - Telephone Number) | (Email Address) | |
| | B. ACCOUNTANT IDENTIFICATION | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Carnaghi & Schwark. PLLC | (Name - if individual, state last, first, and middle name) | | |
| 30435 Groesbeck Hwy | Roseville | Ml | 48066 |
| (Address) | (City) | (State) | (Zip Code) |
| 5/16/09 | | 3421 | |
| rte of Reg;mafoo w;th PCAOB)(;f appUcable) | | | (PCAOB Reg;,tcafoo Norn bee, ;f appUcable JI |
| | 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)(1)(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.**
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### **OATH OR AFFIRMATION**
I, \_D\_a\_vi\_d\_W\_. \_M\_un\_c\_ie \_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_, 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, director, 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
### **This filing\*\* contains (check all applicable boxes):**
- ~ (a) Statement of financial condition.
- □ (b) Notes to consolidated statement of financial condition.
- ~ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X).
- ~ (d) Statement of cash flows.
- ~ (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.
- ~ (g) Notes to consolidated financial statements.
- **!!!ii** (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable.
- D (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- **!!!ii** (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- 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.
- □ (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.
- **!!!ii** (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.
- ~ (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.
- ~ (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.
- □ (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.
- ~ (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 240.15c3-le or 17 CFR 240.17a-12, as applicable.
- □ (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.
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*FINANCIAL STATEMENTS AND SUPPORTING SCHEDULES PURSUANT TO RULE 17A-5 OF THE SECURITIES AND EXCHANGE COMMISSION*
*FOR THE YEAR ENDED DECEMBER 31, 2023*
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Financial Statements and Supplementary Information
December 31, 2023
| TABLE OF CONTENTS | PAGE NO. |
|-------------------------------------------------------------------------------------------------|------------|
| Report oflndependent Registered Public Accounting Firm | 3 |
| FINANCIAL STATEMENTS | |
| Statement of Financial Condition. | 4 |
| Statement of Operations | 5 |
| Statement of Member's Equity | 6 |
| State1nent of Cash Flows | 7 |
| Notes to Financial Statements | 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 17a-5 | 19 |
| Broker-Dealer Exemption Report | 20 |
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Anthony L. Carnaghi, CPA Douglas W. Schwark, CPA
(586) 779-8010 FAX (586) 317-6135
## **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, 2023, 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, 2023, and the results of its operations and its cash flows for the year then ended in confonnity with accounting principles generally accepted in the United States of America.
### **Basis for Opinion**
These financial statements are the responsibility ofCoreCap 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 en-or or fraud. Our audit included pe1forming 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 detennination of reserve requirements under rule l 5c3-l 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 infonnation is the responsibility of CoreCap Investments, LLC's management. Our audit procedures included determining whether the supplementaiy information reconciles to the financial statements or the underlying accounting and other records, as applicable, and perfonning procedures to test the completeness and accuracy of the infonnation presented in the supplementary infonnation. In forming our opinion on the supplementary information, we evaluated whether the supplementaiy information, including its form and content, is presented in conformity with 17 C.F.R. §240. l 7a-5. In our opinion, the computations of net capital and determination of reserve requirements under rule l 5c3-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. Clinton Township, Michigan March 27, 2024
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| Cash \$ | 476,715 |
|---------------------------------------------|---------|
| Accounts receivable: | |
| Brokers, dealers and clearing organizations | 423,810 |
| Deposit -
clearing organizations | 50,000 |
| Sales representatives | 27,598 |
| Related parties | 205 |
| Other | 4,938 |
| Prepaid expenses -----'-'42ccc1=2=9-=-5 | |
| Accounts payable \$ | 68 |
|--------------------------------|---------|
| Commissions payable | 445,101 |
| Amounts due to related parties | 163,414 |
| Unsecured debits ----'1=2=2=9 | |
| Total Liabilities | 609,812 |
| | |
| Member's equity --~79~4=7~4=9 | |
|--------------------------------|--|
|--------------------------------|--|
| TOTAL LIABILITIES AND MEMBER'S EQUITY
\$ | 1,404.56] |
|---------------------------------------------|-----------|
|---------------------------------------------|-----------|
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| Com1nissions \$ | | 299,836 |
|---------------------------------------------|-----|--------------------------|
| Investment company shares | | 1,671,123 |
| Insurance based products | | 1,761,593 |
| | | |
| Gain/Loss principal trades | | 4,007 |
| Interest inco1ne | | 157,294 |
| Underwriting revenue | | 0 |
| Fees earned 12b-l
Other revenue ___ | | 3,084,711 |
| Total revenue | | 4~9_4~6~0_2
7,473,166 |
| Operating Expenses:
Com1nission expenses | | 5,922,509 |
| Clearance fees | | 42,385 |
| Com1nunications | | 149,825 |
| Occupancy costs | | 36,466 |
| Litigation related expenses | | 60,000 |
| Other operating expenses | __ | 1~,2~7~8~,8~4_2 |
| Total operating expenses | | 7 490 027 |
| NET LOSS | (\$ | 16,861) |
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## *STATEMENT OF MEMBER'S EQUITY YEAR ENDED DECEMBER 31, 2023*
| | Member's
Equity |
|-------------------------------|----------------------|
| Balance at January 1, 2023 | \$
1,137,610 |
| Net loss ( | 16,861) |
| Additional capital paid in . | |
| Distributions to me1nber (,_ | __
3~2~6~,0~0~0.) |
| | |
*Balance at December 31, 2023* \$ 794 749
See accompanying notes
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## *STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2023*
## *CASH FLOWS FROM OPERATING ACTIVITIES*
| Net loss (\$ | | 16,861) |
|-----------------------------------------------------------------------------------|------|----------------------|
| Adjustment to reconcile net loss to net
cash provided by operating activities: | | |
| Changes in: | | |
| Receivables ( | | 36,747) |
| Prepaid expenses | | 10,617 |
| Accounts payable | ____ | 1~4'--'-4=2=-3-=-6 |
| Total adjustments | | 118 I 06 |
| Net cash provided by operating activities | | 101,245 |
| CASH FLOWS FROM FINANCING ACTIVITIES | | |
| Me1nber distributions ( ____ | | =32"""'6"'-,0C-'0~0) |
| Net cash used in financing activities | ( | 326,000) |
| NET DECREASE IN CASH | ( | 224,755) |
| Beginning of year
Cash and cash equivalents- | | 701 470 |
| End of year
Cash and cash equivalents- | \$ | 476,715 |
See accompanying notes
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## *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 which is a wholly owned subsidiary of M&O Capital, 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 \$424,000 and \$329,000 as of December 31, 2023 and 2022, respectively. Contract assets were not material as of December 31, 2023 and 2022. Contract liabilities approximated \$446,000 and \$367,000 as of December 31, 2023 and 2022, respectively.
#### **Concentrations**
The Company has one group of representatives under contract which accounted for approximately 49% of CoreCap's total revenue for the year ended December 31, 2023. The Company expects to maintain its relationship with the representative group.
#### **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.
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## *NOTES TO FINANCIAL STATEMENTS*
## **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**
### **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.
## **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 F ASB 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 2020 or state income tax examinations for years before 2019.
#### **Subsequent Events**
The Company has evaluated events and transactions for potential recognition or disclosure through March 27, 2024, which is the same date the financial statements were available to be issued.
The Company, along with Core Capital Holdings, LLC and M&O Capital, LLC, was sold on January 2, 2024.
### **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 31, 2023 charges for services provided by CoreCap Holdings, LLC approximated \$861,000 and are included in other operating expenses in the accompanying statement of operations.
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## *NOTES TO FINANCIAL STATEMENTS*
## **NOTE 4 - NET CAPITAL REQUIREMENTS**
The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-l). Based on the provisions of this rule, the Company must maintain net capital equivalent to the greater of \$50,000 or 1/15th of aggregate indebtedness, as defined.
At December 31, 2023, the Company's net capital totaled \$337,278 which was \$287,278 in excess of its required net capital of \$50,000. The ratio of aggregate indebtedness to net capital (which may not exceed 15 to 1) was 1.81 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 \$3,000 per month as of December 31, 2023.
For the year ended December 31, 2023, occupancy expenses for the current and former locations totaled \$36,466 and is included in occupancy costs in the accompanying statement of operations.
### **NOTE 6 - NEWLY ADOPTED ACCOUNTING PRONOUNCEMENT**
In June 2016, the FASB issued guidance (FASB ASC 362) which significantly changed how entities will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The most significant change in this standard is a shift from the incurred loss model to the expected loss model. Under the standard, disclosures are required to provide users of the financial statements with useful information in analyzing an entity's exposure to credit risk and the measurement of credit losses. Financial assets held by the Company that are subject to the guidance in F ASB ASC 326 were trade accounts receivable and contract assets.
The Company adopted the standard effective January 1, 2023. The impact of adoption was not considered material to the financial statements and the accompanying disclosures.
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*SUPPLEMENTARY INFORMATION*
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## *COMPUTATION OF NET CAPITAL UNDER RULE l 5c3-l OF THE SECURITIES AND EXCHANGE COMMISSION*
| Total ownership equity | \$
794,749 |
|----------------------------------------------------------------------------------------------------------|---------------|
| Deduct ownership equity not allowable for net capital | |
| Total ownership equity qualified for net capital | 794,749 |
| 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 | 794,749 |
| Deduction and/or charges: | |
| Total non-allowable assets from Statement of Financial
a.
Condition | 457,471 |
| Other deductions and/or charges
b. | |
| Other additions and/or allowable credits | |
| Net capital before haircuts on securities positions | 337,278 |
| Haircuts on securities ( computed, where applicable, pursuant to
Rule 15c3-1 [fJ) | |
| Net capital | 337,278 |
| Net capital requirement | 50,000 |
| Excess net capital | \$
287,278 |
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## *COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION*
## **COMPUTATION OF AGGREGATE INDEBTEDNESS**
| Total aggregate indebtedness liabilities | \$
609,812 |
|-----------------------------------------------------|---------------|
| Percentage of aggregate indebtedness to net capital | 181% |
**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 rep011 dated December 31, 2023 and the above calculations.
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# ■ *CORECAPINVESTMENT~LLC*
## *COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS FOR BROKER-DEALER UNDER RULE 15c3-3*
CoreCap Investments, LLC is exempt from the Computation for Detennination of Reserve Requirements for Broker-Dealers under Rule l 5c3-3 of the Securities and Exchange Commission because of exemption provided under Rule 15c3-3(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 ... ".
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ANTHONY L. CARNAGHI, CPA DOUGLAS **W.** SCHWARK, CPA
(586) 779-801 0 FAX (586) 317-61 35
## **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 (F onn SIPC-7) for the year ended December 31, 2023. 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, 2023. 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 repo1i 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-17A-5 Part III with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2023, 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 supp01iing the adjustments, noting no differences; and
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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 AI CPA 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, 2023. 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.
Clinton Twp., Michigan March 27, 2024
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### SECURITIES INVESTOR PROTECTION CORPORATION
SIPC-7 37 REV 0722
## **GENERALASSESSMENTFORM**
For the fiscal year ended 12/31/2023
| | Determination of "SIPC NET Operating Revenues" and General Assessment for:
MEMBER NAME
CORECAP INVESTMENTS LLC | | SEC No.
8-47783 | |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--------------------|-------------------------|
| | r ······. ·····~··'"····Forthe_fiscal period beginning ·····"'••··:11(202~ .· ·········and ending_._12/31/2023. | | | .c. ··•~h.
·"••·M••· |
| 1 | Total Revenue (FOCUS Report - Statement of Income (Loss)- | Code 4030) | | \$7,473,166.00 |
| 2 | Additions: | | | |
| | a Total revenues from the securities business of subsidiaries (except foreign
subsidiaries) and predecessors not included above. | | | |
| | b Net loss from principal transactions in securities in trading accounts. | | | |
| | c Net loss from principal transactions in commodities in trading accounts. | | | |
| | d Interest and dividend expense deducted in determining item 1. | | | |
| | e Net loss from management of or participation in the underwriting or
distribution of securities. | | | |
| | f Expenses other than advertising, printing, registration fees and legal fees
deducted in determining net profit management of or participation in
underwriting or distribution of securities. | | | |
| | g Net loss from securities in investment accounts. | | | |
| | h Add lines 2a through 2g. This is your total additions. | | | \$ 0.00 |
| 3 | Add lines 1 and 2h | | | \$7,473,166.00 |
| 4 | Deductions: | | | |
| | a 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 to
registered investment companies or insurance company separate accounts
and from transactions in security futures products. | | \$ 6,521,751.00 | |
| | b Revenues from commodity transactions. | | | |
| | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | | \$42,385.00 | |
| | d Reimbursements for postage in connection with proxy solicitations. | | | |
| | e Net gain from securities in investment accounts. | | | |
| | f 100% 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. | | | |
| | g 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). | | | |
| | h Other revenue not related either directly or indirectly to the securities business. ________ _
Deductions in excess of \$100,000 require documentation | | | |
| 5 | a Total interest and dividend expense (FOCUS Report - Statement
of Income (Loss)-
Code 4075 plus line 2d above) but
not in excess of total interest and dividend income | | | |
| | | | | |
| | b 40% of margin interest earned on customers securities accounts
(40% of FOCUS Report- Statement of Income (Loss)-
Code 3960) | \$62,917.00
--"- ···----·· •• ~ ++ | | |
| | c Enter the greater of line 5a or 5b | | \$62,917.00 | |
**6** Add lines 4a through 4h and 5c. This is your **total deductions.** \$ **6,627,053.00**
{19}------------------------------------------------
| 37 REV 0722 | | | | SIPC-7
37 REV0722 | |
|-------------|------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
| | | | | | |
| | | | | \$ 846, 113.00 | |
| | | -·· ····---'"-·'"""-"--'--"·. ----------
\$1,269.00 | | | |
| | | | | \$115.00 | |
| | | | | | |
| | | | | \$ 694.00 | |
| | | | | \$460.00 | |
| 14 | | | | \$0.00 | |
| | | | | \$ 460.0 | |
| | | | | \$0.00 | |
| | Designated Examining Authority
DEA: FINRA | | Dec | | |
| NAME | CORECAP INVESTMENTS LLC
27777 FRANKLIN RD STE 700
SOUTHFIELD, Ml 48034 | | | | |
| | | Current overpayment/credit balance, if any
General assessment from last filed 2023 SIPC-6 or 6A
a Overpayment(s) applied on all 2023 SIPC-6 and 6A(s)
b Any other overpayments applied
c All payments applied for 2023 SIPC-6 and 6A(s)
d Add lines 11 a through 11 c
LESSER of line 10 or 11d.
13 a Amount from line 8
b Amount from line 9
c Amount from line 12
O
Interest (see instructions) for
Amount you owe SIPC. Add lines 13d and 14.
Overpayment/credit carried forward (if applicable) | GENERALASSESSMENTFORM
For the fiscal year ended
Subtract line 6 from line 3. This is your SIPC Net Operating Revenues.
Multiply line 7 by .0015. This is your General Assessment.
d Subtract lines 13b and 13c from 13a. This is your assessment balance due.
days late at 20% per annum | SECURITIES INVESTOR PROTECTION CORPORATION
12/31/2023
\$ 694.00
'"•-····-·-·----···-
\$0.00
0.60
\$ 694.00
\$ 694.00
\$1,269.00
\$115.00
\$ 694.00
FYE
Month
2023 | |
1':71 By checking this box, you certify that you have the authority of the SIPC member to sign this ~ form; that all information in this form is true and complete; and that on behalf of the SIPC member, you are authorized, and do hereby consent, to the storage and handling by SIPC of the data in accordance with SIPC's Privacy Policy
| CORECAP INVESTMENTS LLC | David Muncie |
|-------------------------|-----------------------------|
| (Name of SIPC Member) | (Authorized Signatory) |
| 2/7/2024 | david.muncie@corecapinv.com |
| (Date) | (e-mail address) |
Completion of the "Authorized Signatory" line will be deemed a signature.
**This form and the assessment payment are due 60 days after the end of the fiscal year.**
{20}------------------------------------------------
Anthony L. Carnaghi, CPA Douglas W. Schwark, CPA
(586) 779-8010 FAX (586) 317-6135
## **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 15c3-3(k) under which CoreCap Investments, LLC claimed an exemption from 17 C.F.R. subsection 240.15c3-3: 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.
The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. 240. l 7a-5 are limited to (1) commissions and fees earned on mutual funds, annuities, equities and other financial instruments and (2) fees earned for private placements and investment banking deals. In addition, the Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception.
CoreCap Investments, LLC's management is responsible for compliance with the exemption provision 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 fo1ih in paragraph (k)(2)(ii) of rule l 5c3-3 under the Securities Exchange Act of 1934 and the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17C.F.R. 240. l 7a-5, and related SEC Staff Frequently Asked Questions.
Clinton Township, Michigan March 27, 2024
{21}------------------------------------------------
## **CoreCap Investments, LLC Exemption Report Prepared Pursuant to Securities and Exchange Act of 1934 Ruic 17a-5, Subsection 240.17a-S(d)(l) and (4) of the U.S. Securities and Exchange Commission December 31, 2023**
## **CoreCap 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:
CoreCap Investments, LLC, (the Company) is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. Section 240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. Section 240.17a-5( d)(l) and ( 4). To the best of its knowledge and belief, the Company states 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 240.15c3-3(k) throughout the most recent fiscal year ended December 31, 2023, without exception.
The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. Section 240.17a-5 are limited to: (1) commissions and fees earned on mutual funds, annuities, equities, REITs, and other financial instruments, and (2) fees earned for private placements and investment banking deals, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers; and (3) did not carry P AB accounts ( as defined in Rule 15c3-3) throughout the most recent fiscal year without exception.
I, David Muncie, swear ( or affirm) that, to the best of my knowledge and belief, this Exemption Report is true and correct.
*cFo*
Signature Title
Date
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.