# GOVDESK, LLC X-17A-5 (2023-03-31) — Broker-dealer annual report - Company: GOVDESK, LLC - Form: X-17A-5 - Filed: 2023-03-31 - Period: 2022-12-31 - Accession: 0001050100-23-000003 - CIK: 1050100 - File #: 8-50628 - Type: Broker-dealer - Material weakness: No - Auditor: LMHS PC - Auditor location: Norwell, MA - Contact: Mark T Manzo - Phone: 2015191905 - Email: mmanzo@moppartners.com - Website: moppartners.com - Signed by: Jacob Walthour (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1050100/000105010023000003/bcmannualreportpubliced.pdf --- {0}------------------------------------------------ # Blueprint Capital Markets, LLC Statement of Financial Condition For the Year Ended December 31, 2022 {1}------------------------------------------------ # **Blueprint Capital Markets, LLC** # **December 31, 2022** # **Table of Contents** | Facing page and Oath or Affirmation Page | 1-2 | |--------------------------------------------------------|-----| | Report oflndependent Registered Public Accounting Firm | 3 | | Financial Statements | | | Statement of Financial Condition | 4 | | Notes to the Financial Statements | 5-8 | {2}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL REPORTS FORM X-17A-5 PART** Ill 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 > SEC FILE NUMBER 8-50628 | Information Required Pursuant to Rules 17a-5, | | FACING PAGE | 17a-12, and 18a-7 under the Securities Exchange | Act of 1934 | | | |---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|-----------------------|-------------------------------------------------|--------------------------------------------|--|--| | FILING FOR THE PERIOD BEGINNING | 1/01
0
/22 | | AND ENDING 12/31 | /22 | | | | | MM/DD/YY | | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | NAME OF FIRM: BLUEPRINT | CAPITAL | MARKETS | | | | | | TYPE OF REGISTRANT (check
C!J Broker-dealer
□ Security-based swap
D Check here if respondent is also | all applicable boxes):
dealer
an OTC derivatives dealer | | □ Major security-based swap | participant | | | | ADDRESS OF PRINCIPAL PLACE | OF BUSINESS: (Do not | use a P.O. box no.) | | | | | | 45
Academy
Street
, | Suite
200 | | | | | | | | | (No. and Street) | | | | | | Newark | NJ | | | 07102 | | | | (City) | | (State) | | (Zip Code) | | | | PERSON TO CONTACT WITH | REGARD TO THIS FILING | | | | | | | Mark
T
Manzo | (201) | 519-1905 | | mmanzo@moppartners.com | | | | (Name) | {Area Code - Telephone Number)
(Email Address) | | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT | | | | | | | | LMHS
P
C
, | whose reports are contained | | in this filing* | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | 80
Washington
St
Bldg
, | S
Norwell | | MA | 02061 | | | | (Address) | (City) | | (State) | (Zip Code) | | | | 02/24/2009 | | | 3373 | | | | | | | | | (PCAOB R,g;m,tioo N,mbec, ;f appllrable) I | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | CFR 240.17a-S(e)(l)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {3}------------------------------------------------ ### **OATH OR AFFIRMATION** | | I, _J_ac_o_b_W_a_lth_o_u_r --------------~
swear (or affirm) that, to the best of my knowledge
and belief, the | |-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | financial report pertaining to the firm
of Blueprint Capital Markets 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. | | | | | | EHIMEN E EDOHEN | | | Notary Public • State of New Jersey | | | My Commission Expires Aug 24, 2025 | | | | | | | | | Notary Public | | | This filing** contains (check
all applicable boxes): | | | iil (a) Statement of
financial condition. | | D | (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 Regulation 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 subordinated
to claims of creditors. | | | □ (g) Notes to consolidated financial statements. | | | □ (h) Computation of net capital under 17
CFR 240.15c3-1 or 17 CFR 240.18a-l,
as applicable. | | | □ (i) Computation of tangible net worth
under 17 CFR 240.18a-2. | | D | (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. | | D | (m) Information relating to possession
or control requirements for customers under 17 CFR
240.15c3-3. | | 0 | (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. | | 0 | (o) Reconciliations, including appropriate
explanations, of the FOCUS Report with computation
of net capital or tangible net | | | worth under 17 CFR 240.15c3-l, 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. | | iil | (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. | | | □ (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. | | iil | (t) Independent public accountant's report
based on an examination of the statement
of financial condition. | | D | (u) Independent public accountant's report
based on an examination of the financial
report or financial statements under 17 | | | CFR 240.17a-5, 17 CFR 240.18a-7, or 17
CFR 240.17a-12, as applicable. | | | □ (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 240.17a-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. | | D | (y) Report describing any material inadequacies
found to exist or found to have existed
since the date of the previous audit, or | | | a statement that no material inadequacies exist, under
17 CFR 240.17a-12(k). | | D | (z) Other: _____
________________________________ _ | | | | | | **To request confidential treatment of certain portions
of this filing, see 17 CFR 240.17a-S{e){3}
or 17 CFR 240.18a-7(d){2}, as
applicable. | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # *Report of Independent Registered Public Accounting Firm* To The Members Blueprint Capital Markets, LLC Newark, New Jersey ## *Opinion on the Financial Statements* We have audited the accompanying statement of financial condition of Blueprint Capital Markets, LLC, as of December 31 , 2022, 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 Blueprint Capital Markets, LLC as of December 31 , 2022, 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 the entity's management. Our responsibility is to express an opinion on these 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 Blueprint Capital Markets, LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. *LMH-S* P.C. LMHS, P.C. We have served as the Blueprint Capital Markets, LLC's auditor since 2020. Norwell, Massachusetts March 31 , 2022 ![](_page_4_Picture_13.jpeg) {5}------------------------------------------------ # **Blueprint Capital Markets, LLC** # **Statement of Financial Condition** **December 31, 2022** | Assets | | |---------------------------------------------------------------------|---------------| | Cash | \$
234,542 | | Accounts Receivable | 81,667 | | Due from affiliate | 935 | | Prepaid expenses and other assets | 4,266 | | Fllllliture and equipment, net of \$38,408 accumulated depreciation | 833 | | Total Assets | \$
322,243 | | | | | Liabilities and Members' Equity | | | Accounts payable & Accrued Expenses | \$
19,600 | | Commissions payable | 157,740 | | Payable to affiliate | 11,472 | | Total Liabilities | 188,812 | | Members' Equity | 133,431 | | Total Liabilities and Members' Equity | \$
322,243 | See independent auditor's report and accompanying notes. {6}------------------------------------------------ ## **1. Organization** Blueprint Capital Markets, LLC, formerly known as Govdesk, LLC (the "Company"), was formed as a Limited Liability Company in California in September 1997, with a termination date of September 30, 204 7. The Company registered as a broker-dealer with the Securities and Exchange Commission in August, 1998, and is a member of the Financial Industry Regulatory Authority. The Company engages in private placement of securities. On January 01 , 2022, Blueprint Capital Advisors, LLC ("BCA") purchased 100% of the membership interest in Securities International Group, LLC ("SIG"), the majority owner of Govdesk, LLC. In March 2022, Govdesk, LLC submitted a Continuing Member Application with FINRA to effect the change. The application for the change in ownership was approved by FINRA in February 2023. ### **2. Significant Accounting Policies** ## **Cash and Cash Equivalents** The Company considers all demand deposits held in banks and certain highly liquid investments with original maturities of three months or less, other than those held for sale in the ordinary course of business, to be cash equivalents. ### **Accounts Receivable** The Company considers accounts receivable to be fully collectible, and accordingly, no allowance for doubtful accounts has been provided. Management reviews accounts receivable and sets up an allowance for doubtful accounts when collection of a receivable becomes unlikely. ### **Accounting for Credit Losses** In June 2016, The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ('ASU") 2016-13, Financial Instruments---- Credit Losses (Topic326): Measurement of Credit Losses on Financial Instruments, which amends the FASB's guidance on impairment of financial instruments. The ASU adds to GAAP, an impairment model (known as the current expected credit loss ("CECL") model) that is based on expected losses rather than incurred losses. Under the new guidance, the Company recognizes as an allowance, its estimate of lifetime expected credit losses, which the F ASB believes will result in more timely recognition of such losses, If any. The ASU is also intended to reduce the complexity of GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. Further, the ASU makes targeted changes to the impairment model for available-for-sale debt securities At December 31 , 2022, management has determined that the Company had no receivables impacted by the guidance. ### **Furniture and Equipment** Furniture and equipment purchases greater than \$500 are valued at cost. Depreciation is being provided by the use of the straight-line method over estimated useful lives ranging from five to seven years. Total cost of furniture and equipment was \$39,242. Accumulated depreciation was \$38,408 and current depreciation expense amounts to \$722. ### **Referral Fees** Referral fee revenues are earned from introducing investors to private funds. Revenue is recognized when investor funds have been successfully accepted into the funds and the income is reasonably determined. ### **Basis of Accounting** The financial statements of the Company have been prepared on an accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities. {7}------------------------------------------------ ### **2. Significant Accounting Policies Continued** ### **Revenue Recognition** The Company complies with ASC Topic 606 "Revenue from Contracts with Customers" with a date of January 1, 2019. As a result, it has changed its accounting policy for revenue recognition as detailed below. The Company applied Topic 606 using the cumulative effect method - i.e. by recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of equity at January 1, 2019. This was immaterial. Therefore, any prior reporting information has not been adjusted and continues to be reported under Topic 606. Performance Obligations - Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of the good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer has obtained control over the promised good or service. The amount of revenue recognized reflects the consideration of which the Company expects to be entitled in exchange for the promised goods or services. The following provides detailed information on the recognition of the Company's revenue from contracts with customers: ### **Trading revenue** During the year 2022, the Company discontinued trading operations and no trading revenue was recorded for the year ended December 31 , 2022. ### **Use of Estimates** The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and may have an impact on future periods. ### **Fair Value of Financial Instruments** Unless otherwise indicated, the fair values of all reported assets and liabilities that represent financial instruments (none of which are held for trading purposes) approximate the carrying values of such amounts. ### **Income Taxes** The Company, a limited liability company, has elected to be taxed as a partnership under the Internal Revenue Code and a similar state statute. In lieu of income taxes, the Company passes 100% of its taxable income and expenses to its members. Therefore, no provision or liability for federal or state income taxes is included in these financial statements. However, the Company is subject to the annual California LLC tax of \$800 and a California LLC fee based on gross income. ### **3. Fair Value Measurements** The Fair Value Measurements Topic of the FASB accounting standards codification establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level !measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: {8}------------------------------------------------ ## **3. Fair Value Measurements Continued** | Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Company has the ability to access at the measurement date | |---------|--------------------------------------------------------------------------------------------------------------------------------------------------------| | Level 2 | Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly or indirectly | Level3 Unobservable inputs for the asset or liability ## **Determination of Fair Value** Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the Company bases its fair value on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between participants at the measurement date. It is the Company's policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets and liabilities where there exists limited or no observable market data, and therefore, are based primarily upon management's own estimates, are often calculated based on current pricing policy, the economic and competitive environment, the characteristics of the assets and liability and other such factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, that could significantly affect the results of current or future value. The Company had no financial instruments to measure for fair value as of December 31 , 2022. ## **4. Net Capital Requirements** The Company is subject to the Securities and Exchange Commission Uniform net capital rule (Rule 15c3-l) 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. At December 31 , 2022, the Company had net capital of \$45,730 which was \$33,143 in excess of its calculated minimum net capital requirement of \$12,587. The Company's ratio of aggregate indebtedness to net capital was 4.13 to 1. ## **5. Related Parties** During 2022, the Company paid \$58,219 to King Harbor Wealth Management ("KHWM") for consulting services. KHWM is an entity which is wholly owned by the former Management of Govdesk, LLC. During 2022, Blueprint Capital Advisors, LLC, ("BCA") the indirect owner of the Company, paid \$93,685 in expenses on behalf of the Company. At December 31 , 2022, The Company owed BCA \$11 ,472. ### **6. Lease Obligation** In February 2016, the FASB issued ASU No. 2016-02, "Lease (Topic 842)" which supersedes previous leasing guidance in Topic 840. Under the new guidance, lessees are required to recognize lease-of-use assets and lease liabilities on the statement of financial condition for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The F ASB has since issued additional related ASU amendments to clarify and improve certain aspects of the guidance and implementation of Topic 842. On March 14, 2022, the Company entered into a license to use premises agreement with Blueprint Capital Advisors for office space leased by BCA in Newark New Jersey. Pursuant to the agreement, BCA has granted the Company permission to use a designated portion of the premises for use as a corporate office. In consideration for the use of the premises, the Company has agreed to pay BCS \$600 per month. Both parties acknowledge that the licenser to use agreement is not a lease. {9}------------------------------------------------ ## 7. **Financial Instruments with Off-Balance-Sheet Credit Risk** As a securities broker, the Company executes transactions with and on the behalf of customers. The Company introduces these transactions for clearance to a clearing firm on a fully disclosed basis. In the normal course of business, the Company's customer activities involve the execution of securities transactions and settlement by its clearing broker. The agreement between the Company and its clearing broker provides that the Company is obligated to assume any exposure related to nonperformance by its customers. These activities may expose the Company to off-balance-sheet risk in the event the customer is unable to fulfill its contracted obligations. In the event the customer fails to satisfy its obligations, the Company may be required to purchase or sell financial instruments at the prevailing market price in order to fulfill the customer's obligation. The Company seeks to control off-the-balance-sheet credit risk by monitoring its customer transaction and reviewing information it receives from its clearing broker on a daily basis and reserving for doubtful accounts when necessary. ### **8. Subsequent Events** The Company has evaluated subsequent events through March 31 , 2023, the date which the financial statements were available to be issued. Based upon the review, the Company had determined that there are no events which took place that would have a material impact on the financial statements, which would require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.