# CASTLE HILL CAPITAL PARTNERS, INC. X-17A-5 (2022-03-18) — Broker-dealer annual report - Company: CASTLE HILL CAPITAL PARTNERS, INC. - Form: X-17A-5 - Filed: 2022-03-18 - Period: 2021-12-31 - Accession: 0001047972-22-000006 - CIK: 1047972 - File #: 8-50550 - Type: Broker-dealer - Material weakness: No - Auditor: SPICER JEFFRIES LLP - Auditor location: DENVER, CO - Contact: GEOFFREY WEBSTER - Phone: 212-784-6104 - Email: gwebster@castlehillcap.com - Website: castlehillcap.com - Signed by: Geoffrey L Webster (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1047972/000104797222000006/secshortform2021two.pdf --- {0}------------------------------------------------ STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PURSUANT TO SEA RULE 17 A-5 AND CFTC REGULATION 1.17 Year Ended December 31, 2021 {1}------------------------------------------------ ## **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0 MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden # **ANNUAL REPORTS FORM X-17 A-5 PART Ill** | hours per response: 12 | | |------------------------|--| | | | SEC FILE NUMBER **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 01I01!2021 | ---------- | AND ENDING 1213112021 | ----------- | |-------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------|----------------------------| | | MWDDNY | | MWDDNY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: Castle Hill Capital Partners, Inc. | | | | | TYPE OF REGISTRANT (check all applicable boxes):
D Broker-dealer
□ Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer | D Major security-based swap participant | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | 216 East 45th Street, Suite 1301 | | | | | | (No. and Street) | | | | New York | NY | | 10017 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Geoffrey L Webster | 212-784-6104 | | gwebster@castlehillcap.com | | (Name) | (Area Code -Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | Spicer Jeffries LLP | | | | | | (Name - if individual, state last, first, and middle name) | | | | 4601 OTC Boulevard, Suite 700 | Denver | co | 80237 | | (Address) | (City) | (State) | (Zip Code) | | | | 349 | | | | | | | | | 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 appli cable. **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.** {2}------------------------------------------------ ## **OATH OR AFFIRMATION** | I, Geoffrey L Webster | swear (or affirm) t hat, t | the best of my knowledge and belief, t he | |-------------------------------------------------------------------------------|----------------------------|----------------------------------------------------------------------------------| | financial report pertaining to the firm of Castle Hill Capital Partners, Inc. | | as of | | 2~,
December 31 | | is true and correct. I further swear or affirm) that neither the company nor any | partner, officer, director, or equiva lent person, as the case may be, has any propri tary interest in any account classified solely as that of a customer. > **BISMAR TRUJILLO BARRIOS NOTARY PUBLIC, STATE OF NEW YORK REG. NO. 0JTR638!456 QUALIFIED IN SUFFOLK COUNTY COMMISSION -EXPIRES JANUARY 7,2823** | Tit l | | | |-------|--|--| ## **This filing\*\* contains (check all applicable boxes):** - ~ (a) Statement of financia l condition. - ~ (b) Notes to consolidated statement of financial condition . - D (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 Regu lation S-X). - D (d) Statement of cash flows . - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subord inated to claims of cred itors. - D (g) Notes to consolidated financia l statements. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhib it A to 17 CFR 240.15c3-3. - D (k) Computation for determination of security-based swap reserve requ irements 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 un der Exh ibit A to§ 240.15c3-3. - [J (m) Information relating to possession or control requirem ents for customers under 17 CFR 240.15c3-3. - C.l (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. - D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capita l or tangible net worth under 17 CFR 240.15c3-l, 17 CFR 240.18a-l, 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 li CFR 240.l 7a-5, 17 CFR 240.l 7a-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. - D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as a~plicable. - D (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 financia l 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. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.l 7a-5 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.l 7a-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.* {3}------------------------------------------------ ## **Contents** ## Year Ended December 31, 2021 ### **Financial Statements** | Independent Auditors' Report | | |----------------------------------|-----| | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3,4 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 4601 DTC BOULEY ARD • SUITE 700 DENVER, COLORADO 80237 TELEPHONE: (303) 753-1959 FAX: (303) 753-0338 www.spicerieffries.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 , 2021 , and the related notes to the statement of financial condition. In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31 , 2021 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 a public 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 op1mon. We have served as the Company's auditors since 2017. Denver, Colorado February 26, 2022 ![](_page_4_Picture_12.jpeg) {5}------------------------------------------------ Statement of Financial Condition Year Ended December 31 , 2021 ## **ASSETS** | Cash | 258,837
\$ | |--------------------------------------------|---------------| | Accounts Receivable | 1,59 1,359 | | Prepaid Expenses | 6,082 | | Security Deposit | 18,761 | | TOTAL ASSETS | \$ 1,875,040 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | LIABILITIES | | | Accounts Payable and Concessions Payable | \$ 1,354,391 | | Accrued Expenses | 99,404
\$ | | TOTAL LIABILITIES | \$ 1,453,795 | | SHAREHOLDERS' EQUITY | 421,245
\$ | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | \$ 1,875,040 | Page 3 The accompanying notes are an integral part of these frnancial statements {6}------------------------------------------------ Notes to Financial Statements Year Ended December 31 , 2021 ## **1. ORGANIZATION AND NATURE OF BUSINESS** Castle Hill Capital Partners, Inc. ("the Company'') is a securities broker-dealer registered with the Securities and Exchange cmmnission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA") and Securities Investor Protection Corporation ("SIPC"), incorporated on September 5, 1997 in the state of New York. The Company is also registered with the Commodity Futnres Trading Commission ("CFTC") and a member of the National Futnres Association ("NFA"). The Company acts as a broker-dealer and does not claim an exemption from SEA Rule 15c3-3, in reliance of footnote 74 to SEC Release 34-70073, and as discussed in Q&A 8 of the related FAQ issued by SEC staff The Company represents that it does not and will not (i) directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (ii) does not and will not carry accounts of or for customers and (iii) does not and will not carry P AB accounts. The Company's securities 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 engages in Third Party Marketing and Private Placements of securities issued by its private company clients for a fee to accredited investors and institntions. ### 2. **SIGNIFICANT ACCOUNTING POLICIES** *Basis of Accounting* - The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). *Cash* - The Company's cash is held principally at one frnancial institntion and at times may exceed federally insured limits. The Company has placed these funds in a high quality institntion in order to minimize risk relating to exceeding insured limits. The Company believes it is not exposed to any significant risk on cash. *Income taxes* - The Company has elected to be taxed under the provisions of Subchapter S of the Internal Revenue Service code. Under those provisions, the Company does not pay federal income taxes on its corporate income. Instead, the stockholders are 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 expenses and losses are recognized when incurred. *Accounts Receivable* - The Company carries its accounts receivable at cost less an allowance for doubtful accounts, if any. On a periodic basis the Company evaluates accounts receivable and establishes an allowance for doubtful accounts, if necessary, based on a history of past bad debts and collections and current credit conditions. Accounts are written off as uncollectible on a case by case basis. *Marketing Fees Receivable* - Based on terms of various contracts and the estimated collections, the projected receivables as of2021 year-end to be collected over the next two years are as follows: 2022 - \$822,172; 2023 - \$533,318; 2024 - \$30,389, with no current receivables extending beyond 2024. *Uncertain tax positions* - The Company has adopted the provisions of Accounting for Uncertainty in Income Taxes ("Uncertain Tax Position"). Uncertain Tax Position prescribes recognition thresholds that must be met before a tax position is recognized in the frnancial statements and provides guidance on de-recognition, **classification, interest and penalties, accounting 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 evaluated its tax position for the year ended December 31, 2021 , and does not expect any material adjustments to be made. The tax years 2021 , 2020, 2019, and 2018, remain open to examination by the major taxing jurisdictions to which the entity is subject. *Use of estimates* - The preparation offrnancial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the frnancial statements and the reported amounts of revenue and expenses during the reporting period. Aetna! results could differ from those estimates. {7}------------------------------------------------ Notes to Financial Statements Year Ended December 31, 2021 ## **3. NET CAPITAL REQUIREMENTS** TI1e Company is subject to the SEC Uniform Net Capital Rule (SEC Rule l 5c3-l ), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as def med, 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 , 2021 the Company had net capital of\$259,275 which was \$205,798 in excess of its required net capital of\$53,478. The Company's ratio of aggregate indebtedness to net capital was 287%. ### **4. INDEMNIFICATIONS** In the normal course of its business, the entity indemnifies and guarantees certain service providers against specified potential losses in colll!ection 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 calll!ot exceed the commissions receivable from the service provider. As such, the entity believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the fmancial statements for these indetrmifications. ### **5. OPERATING LEASES** The Company maintains 2 office locations secured by short term leases. It's location at 216 East 45th St., Suite 1301 , New York, NY 10017 was executed on November 1, 2019 and was for a one year term. This lease currently is month to month at a price of \$4000/mo , or \$48,000/yr. The Company's Florida Branch Office is located at 319 Clematis St., Suite 213, West Pahn Beach, FL 33401 , and currently has a montly lease, executed on January I, 2022. Its lease payment will \$832 per month. ### **6. 401(k) AND PROFIT SHARING PLAN** The Company currently has a 40l(k) & Profit Sharing Plan. 40l(k) contributions are made on an individual basis, and new employees are eligible to join the plan after six (6) months of service. ### **7. FINANCIAL INSTRUMENTS AND CONTINGENCIES** The Company is engaged in business with various counterparties. In the event that counterparties do not fulfill their obligations, the Company may be exposed to default risk. The risk of default depends on the creditworthiness of the counterparty. It is the Company's policy to review as necessary, the credit standing of each counterparty with which it conducts business. The Company's financial instruments, including cash, other assets, accounts receivable, account payable and accured expenses are carried at amounts that approximate fair value due to the short-termnature of those instruments. ### **8. SUBSEQUENT EVENTS** As of February 26, 2022 the Company has conducted a subsequent review of its fmancial operations and has found no subseqent events. Page 8 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.