# SUPREME ALLIANCE LLC X-17A-5 (2021-03-31) — Broker-dealer annual report - Company: SUPREME ALLIANCE LLC - Form: X-17A-5 - Filed: 2021-03-31 - Period: 2020-12-31 - Accession: 0001063034-21-000008 - CIK: 1063034 - File #: 8-51046 - Material weakness: No - Auditor: OHAB & COMPANY, PA - Auditor location: Maitland, FL - Contact: Henry Smith - Phone: 561-460-2870 - Email: pam@ohabco.conr - Website: ohabco.conr - Signed by: Henry Smith (Presidentm CEO CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1063034/000106303421000008/supreme2020.pdf --- {0}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response .. . . . . . 12.00 8- # ANNUAL AUDITED REPORT FORM X-17A-5 PART III | | SEC FILE NUMBER | |--|-----------------| 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 PERIOD BEGINNING 01/01/2020 | | AND ENDING 12/31/2020 | | | |-------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|-----------------------|--------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: | Supreme Alliance LLC | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
Langenberg Strasse 26 | | | FIRM I.D. NO. | | | | (No. and Street) | | | | | Haschtashh | Germaanv | | 66871 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | Ohab & Company, PA | | | | | | | (Name - if individual, state last, first, middle name) | | | | | 100 East Sybelia Avenue, Ste 130 Maitland | | ü | 32751 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | Certified Public Accountant
Public Accountant
Accountant not resident in United States or any of its possessions. | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | I arms for grownian your the your would woner be assessed by the animal of as indonor any while a | | | | | 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 facts and circumstances relied on as the basis for the exemption. See Section 240.17a-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 OMB control number. SEC 1410 (11-05) {1}------------------------------------------------ #### OATH OR AFFIRMATION Michael Jones swear (or affirm) that, to the best of L my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of Supreme Alliance LLC C . . . . . . . . . . . . . . . . . . . I was a more and correct. I further swear (or affirm) that of December 31 neither the company nor any partner, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: Signature Financial & Operations Principal Title BREIGE M. DEWETT Notary Public Notary Public, State of Texas Comm. Expires 08-23-2023 This report \*\* contains (check all applicable boxes): Notary ID 132142894 (a) Facing Page. (b) 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 Changes in Financial Condition. (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. (g) Computation of Net Capital. (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. (i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of consolidation. (1) An Oath or Affirmation. (m) A copy of the SIPC Supplemental Report. (1) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. \*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). {2}------------------------------------------------ ### SUPREME ALLIANCE LLC ## FINANCIAL STATEMENTS DECEMBER 31, 2020 {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) 100 E. Sybelia Ave. Suite 130 Maitland, FL3215l Cenified Public Accountants Email: pam@ohabco.conr Telephone 407-740-73ll Fax 407-740-6Ml ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and MembEr's of Supreme Alliance LLC ### Oplnion on the Flnanciai Statements We have audited the accompanying statement ol financial condition of Supreme Alliance LLC as of December 31, 2020, the related statements of operations, changes in member's equrty, and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the 'Tinancial statements"). ln our opinion, thd financial statements present fairly, in all material respects, the financial position of Supreme Alliance LLC as of December 31,202A, 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 Opinlon These linancial statements are the responsibility of Suprome Alliance LLC's management. Our responsibility is to express an opinion on Supreme Alliance 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 Supreme Alliance 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 examlning, 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 Repoil on Supplemental lnformatlon The Schedules l, ll and ltl have been subjected to audit procedures performed in conjunction with the audit of Supreme Alliance LLC's financial statements. The supplemental information is the responsibility of Supreme Alliance LLC's management. Our audit procedures lncluded 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. ln forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its lorm and content, is presented in conformity with 17 C.F.R. \$240.17a-5. ln our opinion, the Schedules l, ll and lll are fairly stated, in all material respects, in relation to the financial statements as a whole. Oidl ?'4 C-ffi,?b' We have served as Supreme Alliance LLC's auditor since 2017. Maitland, Florida March 25,2021 {4}------------------------------------------------ ## SUPREME ALLIANCE LLC STATEMENT OF FINANCIAL CONDITION December 31,2020 ### ASSETS | Total Assets | | \$ 192,556 | |---------------------------|--------------|------------| | Prepaid Expenses | 24,052 | | | Commission Receivable | 19,083 | | | Cash and cash equivalents | S
149,421 | | ### LIABILITIES AND MEMBER'S EQUITY | LIABILITIES | | | |---------------------------------------|---|------------| | Commissions Payable | ട | 12,621 | | Accounts Payable | | 65,000 | | Member's Equity | | 114,935 | | | | | | Total Liabilities and Member's Equity | | \$ 192,556 | See Independent Auditor's Report and Accompanying Notes to Financial Statements 3 {5}------------------------------------------------ ### SUPREME ALLIANCE LtC STATEMENT OF CASH FLOWS For the Year Ended December ?L,2O2O ## NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Nature of Businqss and Reeulation Supreme Alliance, LLC ("the Company'') is a Delaware limited liability company that began broker-dealer operations in March 1998 to market life insurance and mutualfund products to insurance agents. The Company is a licensed broker-dealer with the Financial lndustry Regulatory Authority (FINRA) and is a wholly owned subsidiary of lnsurance Distribution Consulting, LLC. The Company is registered with FINRA as a limited broker- dealer participating in annuity contracts and mutual funds. The Company operates pursuant to the (KX1)) exemptive provisions of SEC Rule 15c3-3 and will not hold clients' funds or securities , nor directly offer any securities products to related customers. The Company is registered according to the 55,000 net capital provisions of SEC Rule 15c3-1 because of its limited nature. The Company will conduct both institutional and retail business. #### Cash Equivalents The Company considers all short-term non-equity investments with an original maturity of three months or less to be cash equivalents. #### Revenue Recognition Revenue includes fees from mutual funds and distribution fees. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate the transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. Brokerage Commissions. Commissions on the sale of mutual funds and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counter party and confirms the trade with customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and reward of ownership of the securities have been transferred to#rom the customer. Distribution Fees. The company enters into arrangements with managed accounts or other pooled investment vehicles (funds) to distribute shares to investors. The company may receive distribution fees paid by the fund upfront, over time upon the investor's exit from the fund (that is, a contingent deferred sales charge), or as a combination thereof. The Company believes that its performance obligation is the sale of the securities to investors and as such this is fulfilled on the trade date. Any fixed amounts are recognized on the trade date and variable amounts are recognized to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of the shares at future points in time as well as the length of time the investor remains in the funds, both of which are highly susceptible to factors outside the Company's {6}------------------------------------------------ ## SUPREME ALTIANCE tLC STATEMENT OF CASH FLOWS For the Year Ended December 3t,2020 # NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTTNG POLICIES (continued) influence, the company does not believe that it can overcome this constraint until the market value of the fund and the investors activities are known, which are usually monthly or quarterly. Distribution fees recognized in the current period are primarily related to performance obligations that have been satisfied in prior periods. #### Other lncome Other non-commission income consists mainly of FINRA Registration Fees. #### lncome Taxes The Company is a single member disregarded entity for federal and state income tax purposes. As a disregarded entity, the Company is not required to file federal or state income tax returns but the income and expenses of the Company are required to be included in the return of its single member. Therefore no provision or liability for federal or state income taxes has been included in the financial statements. State income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to differences between the financial and income tax bases of assets and liabilities. The deferred taxes assets and liabilities, if any, represent the future tax consequences of those differences, which will either be taxable or deductible when the assets or liabilities are recovered or settled. #### Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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. {7}------------------------------------------------ ## SUPREME AIUANCE rtc NOTES TO FINANCIAT STATEMENTS December 3t,2A2O # NOTE 2 - NET CAPITAL REQUIREMENT The Company is subject to the Securities and Exchange Commission's (SEC's) uniform net capital rule (Rule 15c3-1), which requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital as defined by the Rule, shall not exceed 15 to 1. As of December 31, 2020, the Company had net capital of \$71,800 under Rule 15c3-1, which was S60,625in excess of its required net capital of 55,175. ## NOTE 3 - RELATED PARTY TRANSACTIONS The company operates out of residence of one of the Firm's Principal. There was no rent expense charged for the year ending December 3L,202A. # NOTE 4. COMMITMENTS AND CONTINGENCIES The Company was fined 555,000 by its regulator, FINRA, for its failure to properly develop and implement a written identity theft program in regards to customer accounts. The company has accrued S6s,ooo as of December 31't 2020 for the fine. # NOTE 5 - RECENTIY ISSUED ACCOUNTING PRONOUNCEMENTS on January 1,2018, the company adopted ASU 2014 - 09 Revenue from contracts with customers and all subsequent amendments to the ASU (collectively, "ASC 506") using the modified retrospective method of adoption. ASC 606 created a single framework for recognizing revenue from contracts with customers that fall within its scope. Under ASC 606, revenue is recognized upon satisfaction of performance obligations by transferring control over goods or services to a customer. The adoption of ASC 606 did not result in any changes to beginning retained earnings for the year ended December 2020 or net income for the preceding year. ## NOTE 6 - SUBSEQUENT EVENTS The Company has evaluated those events and transactions that occurred through the date the financial statements were available to be issued. No material events or transactions have occurred during this period which would require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.