# SYNERGY CAPITAL I, LLC X-17A-5 (2021-02-19) — Broker-dealer annual report

- Company: SYNERGY CAPITAL I, LLC
- Form: X-17A-5
- Filed: 2021-02-19
- Period: 2020-12-31
- Accession: 0001092086-21-000001
- CIK: 1092086
- File #: 8-51971
- Material weakness: No
- Auditor: Alperin,Nebbia & Associates
- Auditor location: Fairfield, NJ
- Contact: Ken George
- Phone: 6033805435
- Signed by: Stephen Berman (President)

Original filing: https://www.sec.gov/Archives/edgar/data/1092086/000109208621000001/dec20_audit_synergy_public3.pdf

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# SYNERGY CAPITAL I, LLC

# STATEMENT OF FINANCIAL CONDITION

DECEMBER 31 , 2020

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UNlTED ST A TES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31 , 2020 Estimated average burden hours oer resoonse . . . 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** 

| __<br>REPORT FOR THE PERIOD BEGINNING                                    | _<br>_,O'--!.l'-"/0::.;                                | ll:.::2=02=0'--_ AND EN DI NG | 12/31/2020                     |
|--------------------------------------------------------------------------|--------------------------------------------------------|-------------------------------|--------------------------------|
|                                                                          | MM/DD/YY                                               |                               | MM/DD/YY                       |
|                                                                          | A. REGISTRANT IDENTIFICATION                           |                               |                                |
| NAME OF BROKER-<br>DEALER:<br>Synergy Capital l, 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<br>10038                                               |                                                        |                               |                                |
| (State)<br>(City)                                                        |                                                        |                               | (Zip Code)                     |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT  |                                                        |                               |                                |
| Stephen J. Berman                                                        |                                                        |                               | (212) 385-053 7                |
|                                                                          |                                                        |                               | (Area Code -<br>Telephone No.) |
|                                                                          |                                                        |                               |                                |
|                                                                          | B. ACCOUNTANT IDENTIFICATION                           |                               |                                |
| INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Repo1t* |                                                        |                               |                                |
| Alperin,<br>ebbia & Assoc., CPA, PA                                      |                                                        |                               |                                |
|                                                                          | (Name - if individual, state last. first, middle name) |                               |                                |
| 375 Passaic Avenue Fairfield NJ 07004                                    |                                                        |                               |                                |
| (Address)<br>(City)                                                      |                                                        | (State)                       | (Zip Code)                     |
| CHECK ONE:                                                               |                                                        |                               |                                |
| ~ Ce1tified Public Accountant                                            |                                                        |                               |                                |
| D<br>Public Accountant                                                   |                                                        |                               |                                |
|                                                                          |                                                        |                               |                                |
|                                                                          |                                                        |                               |                                |
| D<br>Accountant not resident in United States or any of its possessions. |                                                        |                               |                                |

*•Ctaims f or exemption from the requireme/11 thal /he annual reporl be covered by /he opinion of an independenl public accounlant must be supporled by a statement of f acts and circumslances relied* <sup>0</sup> <sup>11</sup>*as the basis for the exemption. See sec/ion 240. I 7a-5(e)(l).* 

SEC 1410(06-02)

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## **OATH OR AFFIRMATION**

I, stephcn J. Berman, swear (or affimt) that, to the best ofmy knowledge and belief the accompanying financial statements and supporting schedules pertaining to the finn of Synergy Capital I LLC as of December 31, 2020, arc true and correct l further ( ffi • · · · I ffi d" · swear or a inn) that neither the Company nor any partner propnetor, prmcipa <sup>0</sup> fi <sup>11</sup> cer or ,rector has any proprietary interest in any account classified solely as that of; customer, except as <sup>0</sup>ows:

None

~ */!*  . , . / Notaryp~>

LAUREN~E:. I~, 1\, n.JDt.L Notary Public - State of New York No. 01 KN6407 1 11 Qualified in N<'I-;,; - .C'lunty My Commi<-•· .r ,· EY: , .. ,. ,ay 04, 20211

This report contains (check all applicable boxes):

- (x) (a) Facing page.
- (x) (b) Statement of Financial Condition.
- ( ) (c) Statement of Income (Loss).
- ( ) (d) Statement of Cash Flows.
- ( ) (e) Statement of Changes in Stockholders' Equity.

( ) (f) Statement of Changes in Subordinated Liabilities

(not applicable)

( ) (g) Computation of Net Capital

Pursuant to Rule 15c3-I under the Securities Exchange Act of 1934.

- ( ) (h) Computation for Detennination of Reserve Requirements for Brokers and Dealers Pursua.nt to Rule 1 Sc3-3 under the Securities Ex.change Act of l 934. (not applicable)
- ( ) (i) lnfonnation 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).
- ( ) (i) A Reconciliation, including Appropriate Explanations, of the Computation of Net Capital Under Rule 15c3-l and the Computation for Detennination of the Reserve Requirements Under Rule I Sc3-3
- ( ) (k) A Reconciliation Between the Audited and Unaudited Consolidated Statements of Financial Condition With Respect to Methods of Consolidation (not applicable).
- (x) (I) An Oath or Affinnation.
- ( ) (m) A Copy of the SIPC Supplemental Report.
- ( ) (n) Report on management's assertion letter regarding I SeJ-3 Exemption Report
- ( ) (o) Management's assertion letter regarding I Sc3-3 Exemption Report

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375 Passaic Avenue Suite 200 Fairfield. NJ 07004 973-808-8801 Fax 973-808-8804

![](_page_3_Picture_1.jpeg)

Steven J. Alperin. C PA Vincent Nebbla, CPA Jeffrey M. Sellgmuller, CPA Roger J , Hltchuk, 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, 2020, 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, 2020, 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 m\_ade 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

~ D *Yld,i.,~:Al?-~c/u, ,l?PIJ,* P/J

Fairfield, New Jersey February 17, 2021

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# SYNERGY CAPITAL I, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020

# ASSETS

| Cash                                                              | \$<br>2<br>1,684 |
|-------------------------------------------------------------------|------------------|
| Account receivable                                                | 53,527           |
| Fixed assets at cost, net of accumulated depreciation of \$14,254 |                  |
| Prepaid expense                                                   | 620              |
| TOT AL ASSETS                                                     | \$<br>75,831     |

# LIABILITIES AND MEMBER'S CAPITAL

| Liabilities:                            |              |
|-----------------------------------------|--------------|
| Accounts payable and accrued expenses   | \$<br>57,174 |
| TOT AL LIABILITIES                      | 57,174       |
| Member's capital                        | 18,657       |
| TOT AL LIABILITIES AND MEMBER'S CAPITAL | \$<br>75,831 |

The accompanying notes are an integral part of this financial statement.

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# SYNERGY CAPITAL I, LLC NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31, 2020

### NOTE 1. ORGANTZA TION, 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.

#### NOTE2. 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 repo1ting 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 unce1tain 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 2019, 2018 and 20 17. The Company determined that there are no uncertain tax positions which would require adjustments or disclosures on the financial statements.

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# SYNERGY CAPJT AL I, LLC NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31 , 2020 ( 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 (F ASB) 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 F ASB 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, 2020.

#### 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, 2020 or during the year then ended.

#### NOTE4. GUARANTEES

F ASB ASC 460, Guarantees, requires the Company to disclose information about its obligations under certain guarantee arrangements. F ASB 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, 2020 or during the year then ended.

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# SYNERGY CAPITAL I, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 ( continued)

#### NOTE 5. NET CAPITAL REQUIREMENT

The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (rule l 5c3-1 ), 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 l . The Company is required to maintain minimum net capital equal to the greater \$5,000 or 6 2/3% of aggregate indebtedness. At December 31, 2020, the Company had net capital of \$12,684 and requirement of \$5,000 with \$7,684 of excess net capital. At December 31, 2020, the Company's ratio of aggregate indebtedness to net capital ratio was 3 .96 to 1.

### NOTE6. RELATED PARTY TRANSACTIONS

For the year ended December 31 , 2020, the Company shared office space with its sole member, CSG III. CSG III allocates a percentage of the rent and ce11ain other overhead and administrative expenses to the Company. In lieu of cash payments, \$18,875 of these amounts are recorded as capital contributions of CSG III. CSG III has adequate resources independent of the Company to pay these expenses, and the Company has no additional obligation, either direct or indirect, to compensate a third party for these expenses.

#### NOTE 7. SUBSEQUENT EVENTS

Subsequent events have been evaluated through February 17, 2021 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.