# STARLIGHT FUNDING INVESTMENTS, LLC X-17A-5 (2018-03-01) — Broker-dealer annual report - Company: STARLIGHT FUNDING INVESTMENTS, LLC - Form: X-17A-5 - Filed: 2018-03-01 - Period: 2017-12-31 - Accession: 0001109155-18-000001 - CIK: 1109155 - File #: 8-52424 - Material weakness: No - Auditor: Dollar Logsdon, C.P.A - Auditor location: Flower Mound, TX - Contact: Maria Dembski - Phone: 510-527-6954 - Signed by: Maria Dembski (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1109155/000110915518000001/2017auditreportstarlight.pdf --- {0}------------------------------------------------ | | UNITED STA T ES | | 0MB APPROVAL | |------------------------------------------------|-----------------------------------------------------------------------------------|---------------------------|-------------------------------------------------------| | | Sl::CURITLF.SAKO EXCHANGE COMMISSLON | | 0MB Number.
3235·0123 | | | Was hington, D.C. 20549 | | August 3 1. 2020
Expires· | | | | | Estimated 3verage burden
hours oer response 12.00 | | | ANNUAL AUDITED REPORT | | | | | FORM X-17A-5 | | StC FILE NUMBER | | | PART Ill | | B-52424 | | | | | | | | l;.I\CI NG P,-\G£
Information Required of Brokers and Dea
lers P
u rsuan | | t to Section 17 of the | | Securiti.es Excha | nge Act of 1934 and Rul | e l 7a-5 Ther
eundi::r | | | | | | | | IH: l'ORT FOR THE PERIOD BEGINNING01 /01 /2017 | | AND ENDING 12/31 | /2017 | | | MM/1)0/YY | | MMll)f>IYY | | | A. REGlSTRANT lDENTlFICATION | | | | | ,A.VIE OF BROKER-DEALER: Starlight Funding Investments, LLC | | OFFICIAL USE ONLY | | | | | | | | AJ)l)RESS·OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | FIRM 1.0. NO. | | 1307 Bonita Avenue | | | | | | (No. ,ncl C,1rce1\ | | | | Berkeley | CA | | 94709 | | 1C1ty) | (State) | | (Zip C\!dc) | | | !\.\MF '\ND TELEPHONE NUMBER OF PERSON TO CONTACT IN R£GARD TO THIS REPORT | | | | Mana Dembsk, | | | 510-527-6954 | | | | | | | | 8. ACCOUNTANT IDENTlFlCATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is conrained in this Report• | | | | Dollar Logsdon, G_P.A | | | | | | (N111ne - ({111d1d,l,111/ ec*11011*- · 11m,1 h· . 1 ·up1 *,,.,.,cd bv"* stotenl(:111 ,if.fact:. and c1rcums1a11ces re te on as 11e *as.)\_,,* · > Potential persons who are to respond to th~ collection of information contained in this form are not required *to* respond unless tt1e form d i splays a currently valid 0MB control number. SEC 1410 (06-02) / {1}------------------------------------------------ #### OATH OR AFFIRMATION | 1. Maria Dembski | , swear (or affirm) rhat, ro the best of | |-------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Starlight Funding Investments. LLC | my k~owledge .and belief the accompanying financial statemeot and supporting schedules pertaining to the firm of
--
-----
--
---
~ro~~~b~13~1=-----.:::::.::::: _____
___ -:::=------ | | or
ecem_e_r | ----
-
-
, as
______________
17
~ 20
are true and correct. l further swear (or aflirm) that | | neither the company nor any panne · | · t
·
·
1 ff-
·
1 , propne or, pnnc1pa o 1cer or director bas any proprietary interest in any account | | | dns._,fied solely as that ofa customer, except as follows: | | | | | | | | | Signature | | | QE~Hl PRATT JR
Maria Dembski, CFO | | | Notari ID ii 129161057
Title | | | Mftqtllffll11ion Expires
. .,.,.,,,. 2021 | | | | | | | | | This repo rt** contains (check all applicable boxes): | | EJ (a) Facing Page . | | | ., (b) S | tatemem of Financial Condition. | | v | (c} Statement of Income (Loss) . | | .,. | (d) SwtcmenL of Changes in Financial Condition . | | (e) Statement of C
.,. | hanges in Stockholders' Equity or Panncrs' or Sole Proprietors' Capital. | | | (t) Statement of Changes in Liabilities Subordinated to Claims of Creditors . | | ., (g) Computation of Net Capital. | | | | "' (h) Computauon for Determination of Reserve Requirements Pursuant 10 Rule 15c3-3. | | | "' (i) information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | | 0 (i) A Reconci I iation, including appropriate explanation of the Computation of1'et Capital Under Rule 15c3-l and the | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condi
tion with respect co methods of | | consolidation. | | | (I) | An Oath or Affirmation. | | | (m) A copy of the SIPC Supplemental Report. | | | (n) A report describing any material inadequacies found to exist or founc to have existed sinci: the date oft he previous audit. | \*\* *For condi1io11s of conjide111ial 1rea1men1 of certain portions of this filing. see* sec1io11 *240. I 7a-5 (e)(J).* {2}------------------------------------------------ #### STARLIGHT FUNDING INVESTMENTS, LLC Financial Statements and Supplemental Information Pursuant to Rule l 7a-5 under the Securities and Exchange Act of 1934 For the Year Ended December 31, 2017 Report of Independent Registered Public Accounting Firm {3}------------------------------------------------ ### **CONTENTS** | Financial Statements | | |-----------------------------------------------------------------------------------------------------------|--| | Report of Independent Registered Public Accounting Firm I | | | Statement of Financial Condition 2 | | | Statement of Operating Income 3 | | | Statement of Changes in Member's Equity 4 | | | Statement of Cash Flows 5 | | | Notes to Financial Statements 6 | | | Supplementary Information Pursuant to SEC Rule 17 A-5 | | | Computation of Net Capital under Rule l 5c3-l of the SEC. 9 | | | Reconciliation of Computation of Net Capital 10 | | | Statement Regarding Changes in Liabilities
Subordinated to Claims of General Creditors 11 | | | Statement Regarding the Exemption from Reserve Requirements
and Possession or Control Requirements 12 | | | | | | Statement Regarding SJPC Supplemental Report 13 | | | Exemption Report 14 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) - - - - - - - # **E** II LIi Dollar Logsdon CPA 3208 Jameston Dr\* Flower Mound, TX 75028 \* Phone 972-315-5777 \* Fax 972-315-5778 # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Starlight Funding Investments, LLC We have audited the accompanying statement of financial condition of Starlight Funding Investments, LLC as of December 31 , 2017, and the related statements of income, changes in stockholders' equity, and cash flows for the year then ended. These financial statements are the responsibility of Starlight Funding Investments, LLC's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Starlight Funding Investments, LLC as of December 31, 2017, 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. The Schedule I - Computation of Net Capital Under Rule 15c3-1 has been subjected to audit procedures performed in conjunction with the audit of Starlight Funding Investments, LLC's financial statements. The supplemental information is the responsibility of Starlight Funding Investments, LLC's management. Our audit procedures included 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. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the Schedule I Computation of Net Capital Under Rule 15c3-1 is fairly stated, in all material respects, in relation to the financial statements as a whole. ~~ - Dollar Logsdon CPA Flower Mound, Texas January 24, 2018 - CPA & Advisor {5}------------------------------------------------ # **Starlight Funding Investments, LLC Statement of Financial Condition For the Year Ended December 31, 2017** #### **ASSETS** | Cash | \$
14,146 | |------------------------------------------------|--------------| | Accounts receivable | 45)18 | | Prepaid expenses | 3,052 | | TOTAL ASSETS | \$
62,516 | | LIABILITIES AND MEMBER'S EQUITY
Liabilities | | | Accounts payable | \$
38,225 | | TOT AL LIABILITIES | 38,225 | | Member's Equity | 24,291 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
62,516 | {6}------------------------------------------------ # **Starlight Funding Investments, LLC Statement of Operating Income For the Year Ended December 31, 2017** #### **Revenue** | Consulting Income | \$
7,000.00 | |----------------------------|----------------| | Advisory Fee Income | \$
56,000 | | Private Placements | \$
164,250 | | Success Fee Income | \$
96,969 | | Other | 4,230 | | TOT AL REVENUE | 328,449 | | Expenses | | | | | | Commissions expense | 266,574 | | Licensing and registration | 5,697 | | Occupancy | 1,110 | | Professional fees | 27,434 | | Other expenses | 18,747 | | | | | TOTAL EXPENSES | 319,562 | | NET GAIN | \$
8,887 | {7}------------------------------------------------ # **Starlight Funding Investments, LLC Statement of Changes in Member's Equity For the Year Ended December 31, 2017** | | Total | | |--------------------------------------------------------|--------------|--| | Balances at December 31
, 2016 | \$
15,404 | | | Contributions from member -
cash | | | | Contributions from member -
expenses paid by member | | | | Net Gain | 8,887 | | | Balances at December 31, 201
7 | \$
24,291 | | {8}------------------------------------------------ # **Starlight Funding Investments, LLC Statement of Cash Flows For the Year Ended December 31, 2017** | | TOTAL | | |--------------------------------------------------------------------------------------|-------|----------| | OPERA TING ACTIVITIES | | | | Net Income | \$ | 8,887 | | Adjustments to reconcile net income to net cash provided by (used
in) operations: | | | | Non-customer
Accounts Receivable - | | (45,068) | | Intercompany Receivable | | 82 | | Prepaid Expenses | | 104 | | Accrued Professional Fees | | (364) | | Accounts Payable | | 37,855 | | Total adjustments to reconcile Net Income to Net Cash provided by | | (7,390} | | Net cash provided by (used in) operating activities | \$ | 1,496 | | CASH FLOW FROM FINANCING ACTIVITIES | | | | Member Capital | | | | Net cash provided by financing activities | | | | Net cash increase for period | \$ | 1,496 | | Cash at beginning of period | \$ | 12,650 | | Cash at end of period | \$ | 14,146 | The footnotes regarding intercompany receivables are with KDS on behalf Alan Davis. {9}------------------------------------------------ # **Starlight Funding Investments, LLC Notes to Financial Statements For the Year Ended December 31, 2017** #### **Note 1** - **Nature of Business and Summary of Significant Accounting Policies** Nature of Business: Starlight Funding Investments, LLC, (Company), was organized in the State of Texas on November 30, 1999. The Company has adopted a calendar year. The Company, located in Berkley, CA, is a broker and dealer in securities registered with the Securities and Exchange Commission ("SEC") and is a member ofFINRA. The Company operates pursuant to section (k)(2)(i) exemptive provisions of Rule 15c3-3 of the Securities Exchange Act of 1934, and accordingly, is exempt from the remaining provisions of that Rule. The Company does not hold customer funds or securities, or perform custodial functions relating to customer securities. Under these exemptive provisions, the Computation for Determination of Reserve Requirements and Information Relating to the Possession and Control Requirements are not required. Significant Accounting Policies: The financial statements of the Company have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities. #### Cash and Cash Equivalents The Company considers as cash all short-term investments with an original maturity of three months or less to be cash equivalents. #### Accounts Receivable - Recognitions of Bad Debt The Corporation considers accounts receivable to be fully collectible~ accordingly, no allowance for doubtful accounts is required. If amounts become uncollectible, they will be charged to operations when that determination is made. #### Revenue Recognition The company recognizes revenue from commission generated from facilitating the placement of equity and debt instruments, completion of mergers and acquisitions, and providing financial services for its clients. Revenues are recognized when earned. {10}------------------------------------------------ #### **Starlight Funding Investments, LLC Notes to Financial Statements For the Year Ended December 31, 2017** ### 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 the 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 those estimates. ### Fair Value of Financial Tnstruments The Company's financial asset and liability amounts reported in the statement of financial condition are short-term in nature and approximate fair value. #### Income Taxes The company was formed as a limited liability company and elected to be treated as a sole proprietorship for federal income tax purposes. #### Concentrations The company specializes in mergers and acquisitions, private capital formations, fairness opinions and business valuations. #### Subsequent Events Management has evaluated the Company's events and transactions that occurred subsequent to December 31 , 2017, through January 24, 2018, the date which the financial statements were available to be issued. There were no events or transactions that occurred during this period that materially impacted the amounts or disclosures in the Company's financial statements. #### Note 2 - Net Capital Requirements The Company is subject to the SEC Uniform Net Capital Rule (Rule 15c3-1 ), which requires the maintenance of a minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to **1.** Rule **l** 5c3-l also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to **1.** At December 3 1, 2017, the Company bad net capital of \$9,705, which was \$4,705 in excess of its net capital requirement of \$5,000. The Company's net capital ratio was 3.94 to 1. {11}------------------------------------------------ #### **Starlight Funding Investments, LLC Notes to Financial Statements For the Year Ended December 31, 2017** Note 3 - Possession of Control Requirements The Company does not have any possession or control of customer's funds or secunt1es. There was no material inadequacies in the procedures followed m adhering to the exemptive provision. Of SEC Rule **l** 5c-3-3(k)(2)(i). Note 4 - Contingencies There are currently no asserted claims or legal proceedings against the Company, however, the nature of the Company's business subjects in the various claims, regulatory examinations, and other proceedings in the ordinary course of business. The ultimate outcome of any such action against the Company could have an adverse impact on the financial condition, results, of operations, or cash flows of the Company. Note 5 - Rent The rent expense was \$1,110.00 in 2017. The amount represented the lease cost of the office space. {12}------------------------------------------------ # **Starlight Funding Investments, LLC Supplemental Information Pursuant to Rule 17a-5 For the Year Ended December 31, 2017** | Computation of Net Capital | | |-----------------------------------------------------------------------------------------------------|--------------| | Total member's equity qualified for net capital | 24,291
\$ | | Deductions and/or charges
Non-allowable assets: | (33,784) | | Accounts Receivable
Intecompany Receivable | 45,318 | | Prepaid expenses | 3,052 | | Net Capital | \$
9,705 | | Aggregate indebtedness
Accounts payable | 38,225
\$ | | Total aggregate indebtedness | \$
38,225 | | Computation of basic net capital requirement
Minimum net capital required (greater of \$5,000 or | | | 6 2/3% of aggregate indebtedness) | 5,000
\$ | | Net capital in excess of minimum requirement | 4,705
\$ | | Ratio of aggregate indebtedness to net capital | 3.94 to 1 | {13}------------------------------------------------ # **Starlight Funding Investments, LLC Reconciliation of Computation of Net Capital For the Year Ended December 31, 2017** The above computation does not differ from the computation of net capital under Rule 15c3-1 as of December 31, 2017 as filed by Starlight Funding Investments, LLC on FormX-17A-5. Accordingly, no reconciliation is deemed necessary. {14}------------------------------------------------ # **Starlight Funding Investments, LLC Statement Regarding Changes in Liabilities Subordinated to Claims of General Creditors For the Year Ended December 31, 2017** No statement is required as no subordinated liabilities existed at any time during the year. {15}------------------------------------------------ # **Starlight Funding Investments, LLC Statement Regarding the Exemption from Reserve Requirements and Possession or Control Requirements For the Year Ended December 31, 2017** The Company operates pursuant to section (k)(2)(i) exemptive provisions of Rule 15c3-3 of the Securities Exchange Act of 1934. Under these exemptive provisions, the Computation of Determination of the Reserve Requirements and Information Relating to the Possession or Control Requirements are not required. {16}------------------------------------------------ # **Starlight Funding Investments, LLC Statement Regarding SIPC Supplemental Report For the Year Ended December 31, 2017** The Company is exempt from the filing of the SIPC Supplemental Report as net operating revenues are less than \$500,000. {17}------------------------------------------------ #### STARLIGHT FUNDING INVESTMENTS, LLC *2040 Bancroft Way, Suite 400 Berkeley, CA* 94707 Tel: {510} 527-6954 Fax: {510} 527-7530 #### **Starlight Funding Investments, LLC. Assertions** **Starlight Funding Investments, LLC.** (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240. l 7a-5, "Reports to be made by certain brokers and dealers''). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - (1) The Company claimed an exemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R § 240.15c3-3 (k)(2)(i) - (2) The Company met the identified exemption provision in 17 C.F.R. § 240.I5c3-3(k)(2)(i) throughout the most recent fiscal year without exception #### **Starlight Funding Investments, LLC.** I, Maria Dembski, swear ( or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. Maria Dembski, FINOP January 24, 2018 {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) - - - - - - - - - - - - - - - - - - - - - - - - - - # **E** II LIi Dollar Logsdon CPA 3208 Jameston Dr\* Flower Mound, TX 75028 \* Phone 972-315-5777 \* Fax 972-315-5778 ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the board of Starlight Funding Investments, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Starlight Funding Investments, LLC identified the following provisions of 17 C.F.R. §15c3-3(k) under which Starlight Funding Investments, LLC claimed an exemption from 17 C.F.R. §240.15c3-3:(k)(2)(i), (the "exemption provisions") and (2) Starlight Funding Investments, LLC stated that Starlight Funding Investments, LLC met the identified exemption provisions throughout the most recent fiscal year without exception. Starlight Funding Investments, LLC's management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Starlight Funding Investments, LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(i) of Rule 15c3-3 under the Securities Exchange Act of 1934. Dollar Logsdon CPA Flower Mound, Texas January 24, 2018 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.