# SUPREME ALLIANCE LLC X-17A-5 (2024-04-12) — Broker-dealer annual report - Company: SUPREME ALLIANCE LLC - Form: X-17A-5 - Filed: 2024-04-12 - Period: 2023-12-31 - Accession: 0001063034-24-000002 - CIK: 1063034 - File #: 8-51046 - Type: Broker-dealer - Material weakness: No - Auditor: Ohab & Co - Auditor location: Maitland, FL - Contact: Tracey Raber - Phone: 561-460-2870 - Email: tracey@supremealliancellc.com - Website: supremealliancellc.com - Signed by: Tracey Raber (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1063034/000106303424000002/public3.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER ## **ANNUAL REPORTS FORM X-17A-5 PART** Ill 8-51046 **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 01 /01 /23 | | AND ENDING 12/31 /23 | | |--|--------------------------------------------|--|----------------------|--| |--|--------------------------------------------|--|----------------------|--| MM/00/YY MM/00/YY **A. REGISTRANT IDENTIFICATION** # NAME oF FIRM: Supreme Alliance LLC TYPE OF REGISTRANT (check all applicable boxes): 0 Broker-dealer D Security-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) ## 14804 Resolves Lane | | (No. and Street) | | | | |-------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------------------------------------|-------------------------------|--| | Charlotte | NC | | | | | (City) | (State) | | 28277
(Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | -460-2870
Tracey Raber
561 | | | tracey@supremealliancellc.com | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Ohab & Company, PA | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 100 E Sybelia Ave, Suite 130 | Maitland | FL | 32751 | | | (Address) | (City) | (State) | (Zip Code) | | | July 28, 2004 | | 1839 | | | | rte of Reg;stcaUO, w;th PCAOBJ(;f appUcable) | | {PCAOB Reg;w,uo, N"mbe,, ;f appUcablel I | | | | | 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-5(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. {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | | Signature:
Title:
CFO | 1----e------=-<.-
d | | |------------------------------------------------------|-----------------------------|------------------------|--| | This filing** contains (check all applicable boxes): | | | | - I!! (a) Statement of financial condition. - I!! (b) Notes to consolidated 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 cash flows. - □ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (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. - □ 0) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (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. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (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. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 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. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - Iii (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.lSa-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - l!!iiili (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (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. - 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.lSa-7, as applicable. - □ (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 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - □ (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). □ (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17o-5(e}{3) or 17 CFR 240.18o-7(d){2}, as applicable. {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) I 00 E. Sybelia Ave. Suite 130 Maitland, FL 32751 *Certified Public Accountants* Email: pam@ohabco.com Telephone 407-740-7311 Fax 407-740-6441 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members of Supreme Alliance LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Supreme Alliance LLC as of December 31, 2023, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Supreme Alliance LLC as of December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of Supreme Alliance LLC's management. Our responsibility is to express an opinion on Supreme Alliance LLC'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 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 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 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. We have served as Supreme Alliance LLC's auditor since 2017. Maitland, Florida April 1 , 2024 {3}------------------------------------------------ ### Statement of Financial Condition For the Year Ended December 31, 2023 #### **Assets:** | | Cash and cash equivalents | \$156,910 | | |--------------|-----------------------------------------------|-----------|-------------| | | Marketable Securities | 922,819 | | | | Commission Receivable | 62,696 | | | | Prepaid Expenses | 27,740 | | | | Total Assets | | \$1,170,165 | | Liabilities: | | | | | | Commissions Payable | \$43,749 | | | | Accounts Payable | 0 | | | | Margin Balance | 269,090 | | | | Total Liabilities | | 312,840 | | Equity: | | | | | | Members' Equity | \$486,540 | | | | Accumulated Other Comprehensive income (loss) | 370,785 | | **Total Members' Equity** **Total Liabilities and Members' Equity \$1,170,165** 857,325 See Independent Auditor's Report and Accompanying Notes to Financial Statements {4}------------------------------------------------ ## Notes to Financial Statements For the Year Ended December 31, 2023 #### **NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### **Nature of Business and Regulation** Supreme Alliance, LLC ("the Company") is a Delaware limited liability company that began broker-dealer operations in March 1998 to market life insurance and mutual fund products to insurance agents. The Company is a licensed broker-dealer with the Financial Industry Regulatory Authority (FINRA) and is a wholly owned subsidiary of Insurance 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 (K)(l) 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 \$5,000 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 counterparty and confirms the trade with the 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/from 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 {5}------------------------------------------------ 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 influence, the Company does not believe that it can overcome this constraint until the market value of the fund and the investor's 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 Income** Other non-commission income consists mainly of FINRA Registration Fees. #### **Marketable Securities** As of December 31, 2023, marketable securities consist of; | | 2023 | |--------------------------------------------|------------| | Marketable securities, at cost | \$551 ,635 | | Unrealized Gains | 370,785 | | Total marketable securities, at fair value | \$922,420 | #### **Income 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. {6}------------------------------------------------ #### **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, 2023, the Company had net capital of \$628,527 under Rule 15c3-1, which was \$607,671 in excess of its required net capital of \$20,856. #### **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 31, 2023. #### **NOTE 4 - COMMITMENTS AND CONTINGENCIES** The Company was fined \$65,000 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 \$0, as of December 31, 2023 for the fine. The final payment for the fine was made on December 4, 2023. #### **NOTE 5 - FAIR VALUE MEASUREMENTS** Fair value is defined under Accounting Standards Codification ("ASC") 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). To measure fair value, a hierarchy has been established that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. As such, the hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy in ASC 820 are described below: - Level 1 Unadjusted quoted prices in active markets that are accessible to the reporting entity at the measurement date for identical assets and liabilities. - Level 2 Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: - Quoted prices for similar assets and liabilities in active markets, and quoted prices for identical or similar assets or liabilities in markets that are not active. - Observable inputs other than quoted prices that are used in the valuation of the asset or liabilities (e.g., interest rate and yield curve quotes at commonly quoted intervals). - Inputs that are derived principally from or corroborated by observable market data by correlation or other means. {7}------------------------------------------------ Level 3 - Unobservable inputs for the asset or liability (i.e., supported by little or no market activity). Level 3 inputs include assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). The level in the fair value hierarchy within which the fair value measurement is classified is determined based on the lowest-level input that is significant to the fair value measurement in its entirety. The following table set forth, by level within the fair value hierarchy, Supreme Alliance LLC's assets at fair value as of December 31, 2023: | | Level 1 | Level 2 | Level 3 | Level4 | |--------------|-----------|---------|---------|--------| | Mutual Funds | \$922,420 | - | - | - | #### Assets at Fair Value as of December 31, 2023 #### **NOTE 6 - MARGIN BALANCE** The company margined part of its marketable securities as of December 31, 2023 in the amount of \$269,090, which is secured by the marketable securities. The interest charged for the year was \$9,633 which was at a rate of 6.83% to 6.338% depending on the balance. #### **NOTE 7 - 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. #### **NOTE 8** - **CREDIT LOSSES** The Company follows ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") metholdology to estimate expected credit losses over the entire life of the financial asset. Under the accounting update, the Company has the ability to determine that there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the customer). The Company had accounts receivable as of December 31, 2022 and 2023 of \$50,331 and \$62,696 respectively. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.