# STONECREST CAPITAL MARKETS, INC. X-17A-5 (2024-04-01) — Broker-dealer annual report - Company: STONECREST CAPITAL MARKETS, INC. - Form: X-17A-5 - Filed: 2024-04-01 - Period: 2023-12-31 - Accession: 0001002807-24-000001 - CIK: 1002807 - File #: 8-48754 - Type: Broker-dealer - Material weakness: No - Auditor: Assurance Dimensions - Auditor location: Margate, FL - Contact: Brent Hippert - Phone: 443-541-8400 - Email: jrandolph@stonecrestpartners.com - Website: stonecrestpartners.com - Signed by: Brent Hippert (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1002807/000100280724000001/SCM2023fs2.pdf --- {0}------------------------------------------------ | OMB APPROVAL | |--------------------------| | OMB Number: 3235-0123 | | xpires: Nov. 30, 2026 | | stimated average burden | | ours per response:
12 | | SEC FILE NUMBER | |-----------------| | 8-48754 | | | (No. and Street) | | | |--------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|--------------------------------------------| | Austin | X | | 78707 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | John Randolph | 512-275-6515 | jrandolph@stonecrestpartners.com | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | Assurance Dimensions | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Name - if individual, state last, first, and middle name) | | | | 2000 Banks Road, Suite 218 Margate | | EL | 33063 | | (Address) | (City) | (State) | (Zip Code) | | 4/13/2010 | | 5036 | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | FOR OFFICIAL USE ONLY | | | {1}------------------------------------------------ - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ **REPORT PURSUANT TO RULE 17a-5** **FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** > **FOR THE YEAR ENDED DECEMBER 31, 2023** {3}------------------------------------------------ ### **Contents** 5HSRUWRI,QGHSHQGHQW5HJLVWHUHG3XEOLF\$FFRXQWLQJ)LUP ### *Financial Statements* - 6WDWHPHQWRI)LQDQFLDO&RQGLWLRQ - 6WDWHPHQWRI2SHUDWLRQV - 6WDWHPHQWRI&KDQJHVLQ6WRFNKROGHU¶V(TXLW\ - 6WDWHPHQWRI&DVK)ORZV - 6WDWHPHQWRI&KDQJHVLQ/LDELOLWLHV6XERUGLQDWHGWR&ODLPVRI\*HQHUDO&UHGLWRUV - 1RWHVWR)LQDQFLDO6WDWHPHQWV ### *Supplementary Schedules* - 6FKHGXOH,±&RPSXWDWLRQRI1HW&DSLWDO8QGHU5XOHF - 6FKHGXOHV,, ,,,±&RPSXWDWLRQIRU'HWHUPLQDWLRQRI5HVHUYH5HTXLUHPHQWVDQG ,QIRUPDWLRQ5HODWLQJWRWKH3RVVHVVLRQDQG&RQWURO5HTXLUHPHQWV8QGHU5XOH F 5HSRUWRI,QGHSHQGHQW5HJLVWHUHG3XEOLF\$FFRXQWLQJ)LUPRQWKH&RPSDQ\¶V5XOH F([HPSWLRQ5HSRUW ([HPSWLRQ5HSRUW {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM #### To Stockholder's of **Stonecrest Capital Markets Inc.:** #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of **Stonecrest Capital Markets, Inc.** as of December 31, 2023, the related statements of income, changes in stockholder's equity, changes in liabilities of subordinated to claims of general creditors, 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 **Stonecrest Capital Markets, Inc.** as of December 31, 2023, 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 **Stonecrest Capital Markets, Inc.'s** management. Our responsibility is to express an opinion on **Stonecrest Capital Markets, Inc.'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 **Stonecrest Capital Markets, Inc.** in accordance with the U.S. federal securities laws and the applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") 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 Supplemental Information** Schedule I – Computation of Net Capital Under Rule 15c3-1 and Schedules II & III – Computation for Determination of Reserve Requirements and Information Relating to the Possession and Control Requirements Under Rule 15c3-3 has been subjected to audit procedures performed in conjunction with the audit of **Stonecrest Capital Markets, Inc.'s** financial statements. The supplemental information is the responsibility of **Stonecrest Capital Markets, Inc.'s** management. Our audit procedures included determining whether the supplemental 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 supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the Schedule I – Computation of Net Capital Under Rule 15c3-1 and Schedules II & III – Computation for Determination of Reserve Requirements and Information Relating to the Possession and Control Requirements Under Rule 15c3- 3 is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as **Stonecrest Capital Markets, Inc.'s** auditor since 2023. Assurance Dimensions Margate, Florida April 1, 2024 > **ASSURANCE DIMENSIONS CERTIFIED PUBLIC ACCOUNTANTS & ASSOCIATES also d/b/a McNAMARA and ASSOCIATES, PLLC TAMPA BAY**: 4920 W Cypress Street, Suite 102 | Tampa, FL 33607 | Office: 813.443.5048 | Fax: 813.443.5053 **JACKSONVILLE**: 4720 Salisbury Road, Suite 223 | Jacksonville, FL 32256 | Office: 888.410.2323 | Fax: 813.443.5053 **ORLANDO:** 1800 Pembrook Drive, Suite 300 | Orlando, FL 32810 | Office: 888.410.2323 | Fax: 813.443.5053 **SOUTH FLORIDA**: 2000 Banks Road, Suite 218 | Margate, FL 33063 | Office: 754.800.3400 | Fax: 813.443.5053 www.assurancedimensions.com {5}------------------------------------------------ ## **Stonecrest Capital Markets, Inc. Statement of Financial Condition December 31, 2023** ### ASSETS | Cash | \$
276,253 | |----------------------------------------------------------------------|---------------| | Due from clearing broker | 1,119,812 | | Deposit with clearing broker | 250,000 | | Accounts receivable | 373,933 | | Securities owned | 156,894 | | Advances to brokers, net of allowance of \$76,379 | 824,725 | | Securities pledged as collateral | 225,000 | | Right of use asset | 347,926 | | Due from stockholder | 178,029 | | Prepaid expenses | 109,422 | | Furniture and equipment, net of accumulated depreciation of \$41,349 | 8,745 | | Income taxes receivable | 253,961 | | Other assets | 2,668 | | Total Assets | 4,127,368 | ## LIABILITIES AND STOCKHOLDER'S EQUITY | LIABILITIES: | | |----------------------------------------------------------------------|--------------| | Accounts payable and accrued expenses | 124,102 | | Commissions payable | 1,192,916 | | Accrued compensation | 39,990 | | Lease liability | 347,926 | | Due to related parties | 69,114 | | Liabilities subordinated to claims of general creditors | 225,000 | | Total Liabilities | 1,999,048 | | Contingencies (Note 11) | | | STOCKHOLDER'S EQUITY: | | | Common stock - \$.01 par value; 100,000 shares authorized | | | 1,200 shares issued and outstanding | 12 | | Series A preferred stock - \$.01 par value; 50,000 shares authorized | | | 19,500 shares issues and outstanding | 195 | | Additional paid-in capital | 2,481,883 | | Accumulated (deficit) | (353,770) | | Total Stockholder's Equity | 2,128,320 | | Total Liabilities and Stockholder's Equity | \$ 4,127,368 | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ ## **Statement of Operations For The Year Ended December 31, 2023 Stonecrest Capital Markets, Inc.** | REVENUES: | | |------------------------------------|------| | &RPPLVVLRQV |
| | 7D[FUHGLWIHHV | | | 5LVNOHVVSULQFLSDOWUDGLQJ | | | 0XWXDOIXQGDQGEIHHV | | | ,QYHVWPHQWEDQNLQJ | | | ,QWHUHVW | | | 2WKHU | | | /RVVRQVHFXULWLHVRZQHG | | | Total Revenues | | | EXPENSES: | | | &RPPLVVLRQVFRPSHQVDWLRQDQGEHQHILWV | | | 7HFKQRORJ\DQGFRPPXQLFDWLRQ | | | 2FFXSDQF\DQGHTXLSPHQW | | | &OHDULQJFKDUJHV | | | 3URIHVVLRQDO)HHV | | | 5HJXODWRU\)HHV | | | ,QWHUHVWH[SHQVH | | | *HQHUDODQG\$GPLQLVWUDWLYH | | | Total expenses | | | | | | 1HW,QFRPHEHIRUHLQFRPHWD[HV |
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| | NET INCOME | | 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKHVHILQDQFLDOVWDWHPHQWV {7}------------------------------------------------ ## **Stonecrest Capital Markets, Inc. Statement of Changes in Stockholder's Equity For the Year Ended December 31, 2023** | | | | | | Additional | | | | | | | | |-----------------------------------|--------------|--|--------|-----------------|------------|--------|-----------------|-------------|-----------|-----------------|--|--| | | Common Stock | | | Preferred Stock | | | Paid in | Accumulated | | | | | | | Shares | | Amount | Shares | | Amount | Capital | (Deficit) | | Total | | | | | | | | | | | | | | | | | | Balance, December 31, 2022 | 1,200 | | 12 \$ | 19,500 | | 195 \$ | \$
2,706,533 | \$ | (509,068) | \$
2,197,672 | | | | Series A preferred stock dividend | - | | - | - | | - | (
224,650) | | - | (224,650) | | | | Net Income | - | | - | - | | - | - | | 155,298 | 155,298 | | | | Balance, December 31, 2023 | 1,200 | | 12 \$ | 19,500 | | 195 \$ | \$
2,481,883 | \$ | (353,770) | \$
2,128,320 | | | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ ## **Stonecrest Capital Markets, Inc. Statement of Cash Flows For The Year Ended December 31, 2023** | OPERATING ACTIVITIES | | |--------------------------------------------------|---------------| | Net Income | | | Adjustments to reconcile net income | | | to net cash provided by operations: | | | 'HSUHFLDWLRQ | | | \$GYDQFHVWR%URNHUV |
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| | Net cash provided by Operating Activities | | | FINANCING ACTIVITIES | | | 6HULHV\$3UHIHUUHG6WRFN'LYLGHQG |
| | Net cash used by Financing Activities | | | Net cash increase for year | | | &DVKDWEHJLQQLQJRI\HDU |
| | Cash at end of year | \$
276,253 | | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | | | ,QFRPH7D[HV3DLG | | | | | | ,QWHUHVW3DLG | | | | | |--------------|--|--|--|--| |--------------|--|--|--|--| 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKHVHILQDQFLDOVWDWHPHQWV {9}------------------------------------------------ ## **Stonecrest Capital Markets, Inc. Statement of Changes in Liabilities Subordinated to Claims of General Creditors Year Ended December 31, 2023** | 6XERUGLQDWHGERUURZLQJVDW'HFHPEHU |
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| | 1HWFDSLWDO | | | \$JJUHJDWHLQGHEWHGQHVV/LDELOLWLHVOHVVVXERUGLQDWHGORDQVDQG528\$VVHW |
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| | 3HUFHQWDJHRIDJJUHJDWHLQGHEWHGQHVVWRQHWFDSLWDO | | LQ3DUW,,\$RI)RUP;\$DVRI'HFHPEHU 5HFRQFLOLDWLRQZLWK&RPSDQ\ VFRPSXWDWLRQRI1HW&DSLWDOLQFOXGHG 7KHUHLVQRVLJQLILFDQWGLIIHUHQFHEHWZHHQ1HW&DSLWDODVUHSRUWHGRQ WKHDPHQGHGSDUW,,\$RI)RUP;DDQG1HW&DSLWDODVUHSRUWHGDERYH {19}------------------------------------------------ ## **Stonecrest Capital Markets, Inc. Schedules II & Ill - Computation for Determination of Reserve Requirements and Information Relating to the Possession and Control Requirements Under Rule 15c3-3 December 31, 2023** ## **SCHEDULE** ,, ## **COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDERRULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION** 7KH&RPSDQ\LVH[HPSWIURPWKHSURYLVLRQVRI5XOHFXQGHUWKH6HFXULWLHV ([FKDQJH \$FW RI SXUVXDQW WR SDUDJUDSK N LL RI WKH 5XOH \$VLWUHODWHVWRWKH&RPSDQ\¶VDFWLYLWLHVVXEVFULSWLRQZD\EXVLQHVVWKH&RPSDQ\ GLGQRWFODLPDQH[HPSWLRQSXUVXDQWWR)RRWQRWHRI6(&5XOHF WKURXJKRXWWKHILVFDO\HDUHQGHG'HFHPEHU ## **SCHEDULE** ,OO ## **INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGECOMMISSION** 7KH&RPSDQ\ LVH[HPSWIURPWKHSURYLVLRQVRI5XOHFXQGHUWKH 6HFXULWLHV([FKDQJH\$FWRISXUVXDQWWRSDUDJUDSKN LL RIWKH5XOH \$VLWUHODWHVWRWKH&RPSDQ\¶VDFWLYLWLHVVXEVFULSWLRQZD\EXVLQHVVWKH&RPSDQ\ GLGQRWFODLPDQH[HPSWLRQSXUVXDQWWR)RRWQRWHRI6(&5XOHF WKURXJKRXWWKHILVFDO\HDUHQGHG'HFHPEHU {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM- – EXEMPTION REPORT REVIEW #### To the Stockholder's of **Stonecrest Capital Markets, Inc.** We have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report pursuant to SEC Rule 17a-5, in which (1) **Stonecrest Capital Markets, Inc**. identified the following provision(s) of 17 C.F.R. §15c3- 3(k) under which **Stonecrest Capital Markets, Inc**. claimed the following exemption from 17 C.F.R. §240.15c3-3: (k)(2)(ii) (exemption provision) and (2) **Stonecrest Capital Markets, Inc.** stated that **Stonecrest Capital Markets, Inc**. met the identified exemption provision throughout the most recent 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. § 240.17a-5 5 because the Company limits its business activities (1) proprietary trading; (2) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; (3) receiving transaction-based compensation for identifying potential mergers and acquisition opportunities for clients, referring securities transactions to other broker-dealers, or providing technology or platform services; (4) participating in distributions of securities (other than firm commitment underwritings). In addition, the Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; 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. **Stonecrest Capital Markets, Inc. '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 **Stonecrest Capital Markets, Inc. 's** compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of whichis 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 15c3-3 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 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. Assurance Dimensions Margate, Florida April 1, 2024 **ASSURANCE DIMENSIONS CERTIFIED PUBLIC ACCOUNTANTS & ASSOCIATES** **TAMPA BAY**: 4920 W Cypress Street, Suite 102 | Tampa, FL 33607 | Office: 813.443.5048 | Fax: 813.443.5053 **JACKSONVILLE**: 4720 Salisbury Road, Suite 223 | Jacksonville, FL 32256 | Office: 888.410.2323 | Fax: 813.443.5053 **ORLANDO:** 1800 Pembrook Drive, Suite 300 | Orlando, FL 32810 | Office: 888.410.2323 | Fax: 813.443.5053 **SOUTH FLORIDA**: 2000 Banks Road, Suite 218 | Margate, FL 33063 | Office: 754.800.3400 | Fax: 813.443.5053 www.assurancedimensions.com {21}------------------------------------------------ #### **Stonecrest Capital Markets, Inc. Exemption Report** Stonecrest Capital Markets, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: - (1) The Company claimed [an]exemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3 (k)(2)(ii) of the Rule. - (2) The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3 (k) throughout the most recent fiscal year without exception. - (3) 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. § 240.17a-5 are limited to (include all that apply, for example,): (1) proprietary trading; (2) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; (3) receiving transaction-based compensation for identifying potential merger and acquisition opportunities for clients, referring securities transactions to other broker-dealers, or providing technology or platform services; (4) participating in distributions of securities (other than firm commitment underwritings) in accordance with the requirements of paragraphs (a) or (b)(2) of Rule 15c2-4; and/or (5) engaging solely in activities permitted for capital acquisition brokers ("CAB") as defined in FINRA's CAB rules and approved for membership in FINRA as a CAB, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. I, Brent E. Hippert, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. Brent E. Hippert CFO April 1, 2024 300 W. 6th Street, Suite 1520, Austin, TX 78701 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.