# SYNERGY CAPITAL I, LLC X-17A-5 (2020-02-21) — Broker-dealer annual report - Company: SYNERGY CAPITAL I, LLC - Form: X-17A-5 - Filed: 2020-02-21 - Period: 2019-12-31 - Accession: 0001092086-20-000001 - CIK: 1092086 - File #: 8-51971 - Material weakness: No - Auditor: Alperrin, Nebbia & Associates - Auditor location: Fairfield, NJ - Contact: Steve Berman - Phone: 212-385-0537 - Signed by: Stephen Berman (President) Original filing: https://www.sec.gov/Archives/edgar/data/1092086/000109208620000001/dec19_audit_synergy_public.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | OMB APPROVAL | | | | |--------------------------|--|--|--| | OMB Number: 3235-0123 | | | | | Expires: August 31, 2020 | | | | | Estimated average burden | | | | | hours per response 12.00 | | | | SEC FILE NUMBER 8-51971 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III ### 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 | | 01/01/19 AND ENDING | 12/31/19 | | | | |--------------------------------------------------------------------------|--------------------------------------------------------|---------------------|-----------------------------|--|--|--| | | MM/DD/YY | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | NAME OF BROKER - DEALER: Synergy Capital I, LLC | | | | | | | | | | | OFFICIAL USE ONLY | | | | | | | | FIRM ID. NO. | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | | 40 Fulton Street, 6th Floor | | | | | | | | (No. and Street) | | | | | | | | New York, New York 10038 | | | (Zip Code) | | | | | (City)
(State) | | | | | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | | | | Stephen J. Berman | | (212) 385-0537 | | | | | | | | | (Area Code - Telephone No.) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | | | Alperin, Nebbia & Assoc., CPA, PA | | | | | | | | | (Name - if individual, state last, first, middle name) | | | | | | | 375 Passaic Avenue, Fairfield, NJ 07004 | | | | | | | | (Address)
(City) | | (State) | (Zip Code) | | | | | CHECK ONE: | | | | | | | | x
Certified Public Accountant | | | | | | | | Public Accountant | | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | \* Claims for exemption from the regirl be covered by the opinion of an independent public accountan nuscl be supported by a statement of facts and circumstances relied on as the basis for the exemption. See section 240.17a-5(e)(2). SEC 1410 (06-02) {1}------------------------------------------------ #### OATH OR AFFIRMATION I, Stephen J. Berman, swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statements and supporting schedules pertaining to the firm of Synergy Capital I LLC as of December 31, 2019, are true and correct. I further swear (or affirm) that neither the Company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: ![](_page_1_Picture_2.jpeg) Stephen J. Berman ### This report contains (check all applicable boxes): - Facing page. (x) (a) - (x) (b) Statement of Financial Condition. - Statement of Income (Loss). () (c) - Statement of Cash Flows. (d) ( ) - Statement of Changes in Stockholders' Equity. () (e) - ( ) Statement of Changes in Subordinated Liabilities #### (not applicable) - ( ) (g) Computation of Net Capital Pursuant to Rule 15c3-1 under the Securities Exchange Act of 1934. - ( ) Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934. (not applicable) - ( ) (i) Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934 (not applicable). - ( ) (j) A Reconciliation, including Appropriate Explanations, of the Computation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Rule 15c3-3 - ( ) (k) A Reconciliation Between the Audited and Unaudited Consolidated Statements of Financial Condition With Respect to Methods of Consolidation (not applicable). - An Oath or Affirmation. (x) (1) - (m) A Copy of the SIPC Supplemental Report. ( ) - ( ) (n) Report on management's assertion letter regarding 15c3-3 Exemption Report - ( ) (o) Management's assertion letter regarding 15c3-3 Exemption Report {2}------------------------------------------------ # SYNERGY CAPITAL I, LLC # STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 {3}------------------------------------------------ ![](_page_3_Picture_1.jpeg) Steven J. Alperin, CPA Vincent Nebbia, CPA Jeffrey M. Seligmuller, CPA Roger J. Hitchuk, CPA ## Report of Independent Registered Public Accounting Firm To the Member of Synergy Capital I, LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Synergy Capital, LLC (the "Company") as of December 31, 2019, the related notes and schedules (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2019, 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 this 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 also included assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit of the financial statement provides a reasonable basis for our opinion. We have served as the Company's auditor since 2016. Alperin, Nebbia & Associates, CPA, PA Fairfield, New Jersey February 20, 2020 {4}------------------------------------------------ # SYNERGY CAPITAL I, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 # A S S E T S | Cash
Account receivable | \$
31,213
112,500 | |--------------------------------------------------------------------------------------|-------------------------| | Fixed assets at cost, net of accumulated depreciation of \$14,254
Prepaid expense | -
5,051 | | TOTAL ASSETS | \$
148,764 | | LIABILITIES AND MEMBER'S CAPITAL | | | Liabilities: | | |----------------------------------------|---------------| | Accounts payable and accrued expenses | \$
113,613 | | Due to parent company | 6,425 | | | | | TOTAL LIABILITIES | 120,038 | | | | | | | | | | | Member's capital | 28,726 | | | | | | | | TOTAL LIABILITIES AND MEMBER'S CAPITAL | \$
148,764 | The accompanying notes are an integral part of this financial statement. {5}------------------------------------------------ # SYNERGY CAPITAL I, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 ## NOTE 1. ORGANIZATION, OPERATIONS Synergy Capital I, LLC (the "Company") was originally organized as a Subchapter S corporation in January 1996 in the State of New York. In January 2002, the Company completed a stock purchase agreement ("Purchase Agreement") pursuant to which it converted to a Delaware Limited Liability Company. At that time, CSG III, LLC ("CSG III") purchased all of the outstanding membership interests of the company, formerly known as Synergy Capital Inc., upon the terms and conditions set forth in the Purchase Agreement. The Company is a securities broker-dealer, registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority Inc. ("FINRA"). The Company maintains its books and records on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. ## NOTE 2. SIGNIFICANT ACCOUNTING POLICIES ## Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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 these estimates. ## Income Taxes The Company is not subject to income taxes. The member is individually liable for the taxes on the Company's income. However, the Company is subject to New York City Unincorporated Business Tax on a consolidated basis with its parent company CSG III. Any tax owed will be paid by the parent company. The Company recognizes tax benefits or expenses of uncertain tax positions in the year such determination is made when the position is "more likely than not" to be sustained assuming examination by tax authorities. The tax years that remain subject to examination are 2018, 2017 and 2016. The Company determined that there are no uncertain tax positions which would require adjustments or disclosures on the financial statements. {6}------------------------------------------------ # SYNERGY CAPITAL I, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (continued) ### NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued) # Statement of Cash Flows For purposes of the Statement of Cash Flows, the Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months, which are held for sale in the ordinary course of business. # Fair Value Measurements Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures bears no material effect on the financial statements as presented. # Revenue Recognition The Company receives advisory fee income. Revenue is recognized in accordance with FASB ASC Topic 606 as services are rendered and the contracts identified performance obligations have been satisfied. There were no unsatisfied performance obligations at December 31, 2019. # NOTE 3. COMMITMENTS AND CONTINGENT LIABILITIES The Company had no lease or equipment rental commitments, no underwriting commitments, no contingent liabilities and had not been named as defendant in any lawsuit at December 31, 2019 or during the year then ended. # NOTE 4. GUARANTEES FASB ASC 460, Guarantees, requires the Company to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying value (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. The Company has issued no guarantees effective at December 31, 2019 or during the year then ended. {7}------------------------------------------------ # SYNERGY CAPITAL I, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (continued) #### NOTE 5. NET CAPITAL REQUIREMENT The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (rule 15c3-1), which requires maintaining a minimum net capital and requires that the rate of aggregate indebtedness to net capital, both as defined,shall not exceed 15 to 1. The Company isrequired to maintain minimum net capital equal to the greater \$5,000 or 6 2/3% of aggregate indebtedness. At December 31, 2019, the Company had net capital of \$12,425 and requirement of \$8,003 with \$4,422 of excess net capital. At December 31, 2019, the Company's ratio of aggregate indebtedness to net capital ratio was 9.66 to 1. #### NOTE 6. RELATED PARTY TRANSACTIONS For the year ended December 31, 2019, the Company shared office space with its sole member, CSG III. CSG III allocates a percentage of the rent and certain other overhead and administrative expenses to the Company. At December 31, 2019, the Company owes CSG III \$6,425 for the allocated expenses. #### NOTE 7. SUBSEQUENT EVENTS Subsequent events have been evaluated through February 20, 2020 which was the date the financial statements were issued and no events have been identified which require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.