# CASTLE HILL CAPITAL PARTNERS, INC. X-17A-5 (2019-02-28) — Broker-dealer annual report
- Company: CASTLE HILL CAPITAL PARTNERS, INC.
- Form: X-17A-5
- Filed: 2019-02-28
- Period: 2018-12-31
- Accession: 0001047972-19-000001
- CIK: 1047972
- File #: 8-50550
- Material weakness: No
- Auditor: Spicer Jeffries LLP
- Auditor location: DENVER, CO
- Contact: Geoffrey Webster
- Phone: 2127846104
- Website: spicerjeffries.com
- Signed by: GEOFFREY L WEBSTER (CFO)
Original filing: https://www.sec.gov/Archives/edgar/data/1047972/000104797219000001/secfile18shrtv3.pdf
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STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PURSUANT TO RULE 17A-5
Year Ended December 31, 2018
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**UNITED ST ATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
**ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill**
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| SEC FILE NUMBER |
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| 8-50550 |
**FACING PAGE**
**Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder**
| | REPORT FOR THE PERJOD BEGINNING 01/01/2018
AND ENDING 12/31/2018 | | | |
|------------|------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|---------|--------------------------------|
| | | MM/DD/YY | | MM/DD/YY |
| | | A. REGISTRANT IDENTIFICATION | | |
| | NAME OF BROKER-DEALER: CASTLE HILL CAPITAL PARTNERS, INC. | | | OFFICIAL USE ONLY |
| | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. |
| | 216 East 45th Street, 16th Floor | | | |
| | | (No. and Street) | | |
| | New York | NY | | 10017 |
| | (City) | (State) | | (Zip Code) |
| | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Geoffrey L Webster 212-7484-6104 | | | |
| | | | | (Area Code - Telephone Number) |
| | | B. ACCOUNTANT IDENTIFICATION | | |
| | INDEPENDENT PUBLIC ACCOUNTANT whose op inion is contained in this Report* | | | |
| | Spicer Jeffries LLP | | | |
| | | (Name - if individual. state last. first. middle name) | | |
| | 5251 South Quebec Street, Suite 200 | Greenwood Village | co | 80111 |
| (Address) | | (C ity) | (State) | (Zip Code) |
| CHECK ONE: | | | | |
| | I I I Certified
Pub I ic Accountant | | | |
| | Public Accountant | | | |
| D | Accou ntant not resident in Un ited States or any of its possessions. | | | |
| | | FOR OFFICIAL USE ONLY | | |
| | | | | |
| | | | | |
| | *Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant | | | |
| | must be supported by a statement of/acts and circumstances relied on as the basis for the exemption. See Section 240. I 7a-5(e)(2) | | | |
**Potential 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.**
SEC 1410 (06-02)
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## **OATH OR AFFIRMATION**
1, Geoffrey L Webster , swear (or affirm) that, to the best of
my knowl edge and be! ief the accompanying fin anci al statement and supporting schedul es pertaining to the firm of CASTLE HILL CAPITAL PARTNERS, INC. --------------------------------------------, as
of December 31 20 18 are true and correct. J furth er swear (or affirm) that
neither the company nor any partner, propri etor, principal officer or director has any propri etary interest in any account c lassified solely as that of a customer, except as fo llows:
**None Wlll.1.M'** ' .. **LINDNER** IV!'\' ,, . . . · ·,J # FF992843 EXPtt-e Computation for Determination of the Reserve Requirements Under Exhibit A of Ru le 15c3-3. **0 (k)** A Reconci li ation between the audited and una udited Statements of F in ancial Condition with respect to methods of conso lidation. **[2]** (I) An Oath or Affirmation. **0** (m) A copy of the SIPC Suppl emental Report. **0** (n) A report describing any material inadequacies fo und to ex ist or found to have ex isted since the date of the previous audit.
*\*\*For conditions of confidential treatment of certain portions of this filing, see section 240. !7a-5(e)(3).*
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**Contents** Year Ended December 31, 2018
#### **Financial Statements**
| Independent Auditors' Report | |
|----------------------------------|-----|
| Statement of Financial Condition | |
| Notes to Financial Statements | 3,4 |
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# **SiJ** . SPICER JEFFRIES LLP
CERTIFIED PUBLIC ACCOUNTANTS 4601 OTC BOULEVARD• SUITE 700 DENVER, COLORADO 80237 TELEPHONE: (303) 753-1959 FAX: (303) 753-0338 www.spicerjeffries.com
## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Shareholders and Board of Directors of Castle Hill Capital Partners, Inc.
## **Opinion on the Financial Statements**
We have audited the accompanying statement of financial condition of Castle Hill Capital Partners, Inc. (the "Company'') as of December 31, 2018, and the related notes to the statement of financial condition. In our opinion, the financial statement present fairly, in all material respects, the financial position of the Company as of December 31, · 2018 in conformity with accounting principles generally accepted in the United States of America.
## **Basis for Opinion**
This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are apublic accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
We have served as the Company's auditors since 2017.
Denver, Colorado February 22, 2019
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Statement of Financial Condition December 31, 2018
ASSETS
| Cash | 121,224 |
|----------------------------------------------|----------|
| Accounts Receivable | 81 ,339 |
| Prepaid Expenses | 15,492 |
| Notes Receivable | 10,000 |
| Security Deposit | 18 615 |
| TOTAL ASSETS | 246 670 |
| LIA1IILITIES AND SHAREHOLDERS' EQUIIY | |
| LIA1IILITIE s | |
| Accounts Payable and Accrued Expenses | 26 200 |
| SHAREHOLDERS' EQUITY | 2 20 470 |
| TOTAL LIAJIILITIES AND SHAREHOLDERS' EQ UITY | 2 46 670 |
The accompany ing notes arc an integral part of these financial statements
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Notes to Financial Statements Year Ended December 31, 2018
#### 1. Organization an d Nature of Business
Castle Hill Capital Partners, Inc. ("the Company") is a securities broker-dealer r egistered with the Securities and Exchange commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA'? and Securities Investor l\'otection Corporation ("SIPC"), incorporated on September 5, 1997 in the state: of New York. The Company acts as a broker-dealer and is exempt from Securities and Exchange Commission Ruic 15 c3 .3 under paragraph (k)(2)(ii). The Company docs not, and will not hold customer funds or safekeep customer securities. The Company is also registered with the Commodity Futures Trading Commission ("CFfC'? and a member of the National Futures Association ("NFA"). The Company's sccrnities transactions consist primarily of introducing customer accounts to other broker dealers. The Company is compensated for these introductions based on net revenues generated, via a commission sharing agreement. The Company also engages in Third Party Marketing of Hedge Ftmds for a fee, and engag es in Private Haccmcnts of securities to accredited invc stors and institutions.
#### 2. Signifi cant Accounting Policies
*&sisofAccounling* - The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP).
*C-ash-* The Company's cash is held principally at one financial institution and at times may ex ceed federally insured limits. The Company has placed these funds in a high quality institution in order to minimize risk relating to exceeding insured limits. The Company believ es it is not exposed to any significant risk on cash.
*Income taxes-* The Company has elected to be taxed under the provisions of Subchaptcr S of the Internal Revenue Code. Under those provisions, the Company docs not pay federal income taxes on its corporate income . Instead, the stockholders arc liable for individual federal income taxes on their share of the Company 's income, deductions, losses and credits.
*Revenue Recognition•* Revenue is recognized when earned, while exp en ses and losses arc recognized when incurred.
*Accouna RecehYSble* • The Company carries its accounts receiv able at cost less an allowance for doubtful accounts. On a periodic basis the Company evaluates accounts r eceivable and establishes an allowance for doubtful accotmts, if necessary, based on a history of past bad d ebts and collections and current credit conditions. Accounts arc written off as uncollcctiblc on a case by case basis.
*Uncertain tax posiJions-* The Company has adopted the provisions of Accounting for Uncertainty in Income Taxes ("Uncertain Tax Position"). Uncertain Tax Position prescribes reco gnition thresholds that must b e met before a tax p o sition is r ecognized in the financial statements and provides guidance on dcrccognition, classification, interest and penalties, accotmting in interim periods, disclosure, and transition. Under Uncertain Tax Position, an entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. The Company has ev aluated its tax position for the year ended December 31, 2018, and docs not expect any material adjustments to be made. The tax years 2018, 2017 , 2016, and 2015, remain open to ex amination by the major taxing jurisdictions to which the entity is subject.
*Use of estimates* - The p rep aration of financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported amounts o f assets and liabilities and the disclosur e of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and exp enses during the reporting period. Actual r esults could differ fr om those estimates.
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Notes to Financial Statements Year Ended December 31, 2018
#### 3. Net Capital Requirements
The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15 c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 (and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 15 to 1). At December 31, 2018 the Company had net capital of \$154,974 which was \$149,974 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 16.91 %.
#### 4. Indemnifications
In the normal course of its business, the entity indemnifies and guarantees certain service providers against specified potential losses in connection with their acting as an agent of, or providing services to, the entity. The maximum potential amount of future payments that the entity could be required to make under these indemnifications cannot exceed the commissions receivable from the service provider. As such, the entity b elieves that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications.
#### 5. Operating Leases
The Company currently leases office space in New York City, located at 216 East 4 5th Street, with the lease term ex piring on September 30, 2019. Currently the Company has four (4) employees occupying space there. Fuhlre minimum annual payments required by this lease will b e \$77,595 in 2 019. The Company also leases space at the Manor House in Del Ray , FL for \$1,400 per month on a month to month basis. Total rent expense for these 2 leases in 2018 was \$86,669 , and looks to be 94,395 in 2019.
#### 6. 40l(k) and Profit Plan
The Company currently has a 401(k) & Profit Sharing F1an. The Company has no current plans for funding such Profit Sharing Plan. 401(k) contributions are made on an individual basis, and new employees are eligible after six (6) months of service.
#### 7 . Subsequent Events
As of Febmary 22, 2019 the Company has conducted a subsequent review of its financial operations and has found no subseqent events.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.