# STARLIGHT FUNDING INVESTMENTS, LLC X-17A-5 (2021-02-26) — Broker-dealer annual report - Company: STARLIGHT FUNDING INVESTMENTS, LLC - Form: X-17A-5 - Filed: 2021-02-26 - Period: 2020-12-31 - Accession: 0001109155-21-000001 - CIK: 1109155 - File #: 8-52424 - Material weakness: No - Auditor: Jennifer Wray CPA PLLC - Auditor location: Sugar Land, TX - Contact: Maria Dembski - Phone: 510-527-6954 - Signed by: Maria Dembski (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1109155/000110915521000001/starlightaudit2020.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIESAl\l>EXCHA.~GECOMl\llSSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours•per resoonse ...... 12.00 SEC FILE NUMBER s-52424 # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** **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 BEGINNING01/01/2020 | | | AND ENDING 12/31/2020 | | |----------------------------------------------------------------------------------------------------|-------------------------------------------------------|---------|----------------------------------|--| | | MMIDD/YY | | MMlDD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER.DEALER: Starlight Funding Investments: LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM LD. NO. | | | 1307 Bonita Avenue | | | | | | | (No. and Street)
CA- | | 94709 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Maria Dembskl | | | 510527-8954 | | | | | | (Area.Code - Telephone NurnbJennifer Wray CPA PLLC | | | | | | | (Name- if individual, stale lrtst,jlrsr, middle name) | | | | | 16418 Beewood Glen Dr. | Sugar Land | TX | 77498 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | Certified Public Accountant | | | | | | Public Accourltan.t | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | *\*Claims for exemption from the requirement that the annual repot1 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 jbr the exemption. See Section 240. J7a•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 0MB control number.** SEC 1410 {11-05) {1}------------------------------------------------ ## **OATH OR AFFIRlVIATlON** **l,** Maria Dembski that to the best of my knowledge and belief the nceo1npunying financial stt1tement nnd supporting schedules pertaining to the firm of \_S\_ta\_r\_li.:::gh\_t\_F \_\_ u\_n\_d\_in.....:g::.......ln\_v\_e\_s\_tm\_e\_n\_t\_s\_, \_L\_LC \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ----"'----- . os of December 31 . 2020 , m-c true nnd correct. l further swcnr \Or affirm) that ·---- 1wither tlw company nor any partner, proprietor, principal officer or diree10r has :rny proprietary interest in any ,H:counl ch1ssificd scllely as that of a customer, except as follows: | E MEVERS | | |---------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------| | Notary Public, State of Texas
Comm. Expires 06'26·2012 | | | Notary !D 1 :3 ii 1
&462 | Maria Dembski, CFO | | | Title | | | | | | | | This report ** contains (check a | | | 0
· Fating Pnge. | | | 0 (b) S1a1ement of Financial Condition. | | | 0 {c) Stntcmcnt of lnco1t1e (Loss) or, if there is other ,:omprebensive ineonie in the perio~ (S-XL | | E] (e) Slatemenl tlf | in Stockholders' .Eqnity or Parmers' or Sole Proprietors' Capital. | | 0
Statement of Changes in Liabilities Subordinated to Claims of Creditor,. | | | (g) Computation of Net Capital.
~----- | | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
:
~ | | | (iJ Information Relating to the Possession or Control RequircYnents Limier Rule J 5c3-3. | | | 0 Ci) | A Reeom:ilinticm, including appropriate explanation oftbe Computation of Net Capital Under Rule l 5c3-I and the | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule I 5d-3. | | | 0 (kl A Reconciliation between the audited and unaudited Statements ofFinnncial Condition \vith n.·spcel w rnetlmds of | | _
§
consolidation. | | | An Omh or Affirmation.
·_ | | | lml A copy of the S!PC Supplemental R,;:port
(n) A r,•port describing any materi,tl | found to exist or found to hnve existed since the datt: oftfa: previous audit | | | | | **For condllions (Jj'confid,mriu! 1reatme11t | certain ;mrrions (i/ tltis
see section 24/J. l | {2}------------------------------------------------ #### STARLIGHT FUNDING INVESTMENTS, LLC Financial Statements and Supplemental Schedules For the Year Ended December 31, 2020 {3}------------------------------------------------ ## **CONTENTS** #### FINANCIAL STATEMENTS | Contents | 1 | | |----------------------------------------------------------------------------------------------------------------------|-----|--| | Report of Independent Registered Public Accounting Firm | 2 | | | Statement of Financial Condition | 3 | | | Statement of Operating Loss | 4 | | | Statement of Changes in Member's Equity | 5 | | | Statement of Cash Flows | 6 | | | Notes to Financial Statements | 7-9 | | | SUPPLEMENTARY INFORMATION PURSUANT TO SEC RULE l 7A-5 | | | | Schedule I: Computation of Net Capital•
· Reconciliation of Computation of Net Capital | | | | Schedule II: Statement Regarding Changes in Liabilities
. Subordinated to Claims of General Claims | 11 | | | Schedule III: Statement Regarding the Exemption from·Reserve
Requirements and Possession and Control Requirements | 12 | | | Report of Independent Registered Public Accounting Firm | 13 | | | Exemption Report | 14 | | {4}------------------------------------------------ # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the member of Starlight Funding Investments LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Starlight Funding Investments LLC as of December 31, 2020, the related statements of income, changes in member's equity, and cash flows for the year ended December 31, 2020, and the related notes and schedules. In our opinion, the financial statements present fairly, in all material respects, the financial position of Starlight Funding Investments LLC as of December 31, 2020 and the results of its operations and its cash flows for the year ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial statements are the responsibility of Starlight Funding Investments LLC's management. Our responsibility is to express an opinion on Starlight Funding Investments 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 Starlight Funding Investments 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 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. #### **Auditor's Report on Supplemental Information** The supplementary information contained in Schedules I, II & Ill have 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. §240.1 ?a-5. In our opinion, the Supplementary schedule is fairly stated, in all material respects, in relation to the financial statements as a whole. Jennifer Wray CPA PLLC We have served as Starlight Funding Investments LLC's auditor since 2019. Sugar Land, Texas Feb 25, 2021 {5}------------------------------------------------ # **Starlight Funding Investments Statement of Financial Condition As of December 31, 2020** # **ASSETS** | Cash
Accounts receivable | \$
10,070
9,025 | |---------------------------------------|-----------------------| | Prepaid expenses | 1,292 | | TOTAL ASSETS | \$
20,387 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities | | | Accounts payable | \$
8,730 | | TOTAL LIABILITIES | 8,730 | | Member's Equity | 11,657 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
20,387 | | | | The footnotes are an integral part of the financials statements. {6}------------------------------------------------ # **Starlight Funding Investments, LLC Statement of Operating Loss Year Ended December 31, 2020** #### **Revenue** | Consulting Income | \$
1,500 | |----------------------------|----------------| | Advisory Fee Income | \$ | | Private Palcements | \$
51,750 | | Success Fee Income | \$
57,259 | | Other | 433 | | TOTAL REVENUE | 110,943 | | Expenses | | | Commissions expense | 96,796 | | Licensing and registration | 4,004 | | Occupancy | 74 | | Professional fees | 27,851 | | Other expenses | 7,440 | | TOTAL EXPENSES | 136,165 | | NET LOSS | \$
(25,222) | The footnotes are an integral part of the financial statements. {7}------------------------------------------------ # **Starlight Funding Investments Statement of Changes in Member's Equity Year Ended December 31, 2020** | | Total | |-------------------------------------|--------------| | Balances at December 31, 2019 | \$
26,479 | | Contributions from member -
cash | 10,400 | | Member Distribution | | | Net Loss | (25,222) | | Balances at December 31, 2020 | \$
11,657 | The footnotes are an intregal part of the financial statements. {8}------------------------------------------------ #### **Starlight Funding Investments** ## **Statement of Cash Flows** #### **Year Ended December 31, 2020** | | TOTAL | | |--------------------------------------------------------------------------------------------------|-------|----------| | OPERA TING ACTIVITIES | | | | Net Loss
Adjustments to reconcile net income to net cash provided by (used in)
operations: | \$ | (25,222) | | Accounts Receivable -
Non-customer | | (9,025) | | Accounts receivables others | | 0 | | Prepaid Expenses | | | | Accrued Professional Fees | | (400) | | Accounts Payable | | (7,437) | | Cash provided by operations: | | (16,862) | | Net cash provided by (used in) operating activities | \$ | (42,084) | | FINANCING ACTIVITIES | | | | Member Capital | | 10,400 | | Member Distribution | | | | Net cash provided by financing activities | | \$10,400 | | Net cash decrese for period | \$ | (31,684) | | Cash at beginning of period | \$ | 41,754 | | Cash at end of period | \$ | 10,070 | The footnotes are an integral part of the financials statements. {9}------------------------------------------------ # **STARLIGHT FUNDING INVESTMENTS, LLC Notes to Financial Statements December 31, 2020** # **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 of FINRA. 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. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption is required by 17 C.F.R. § 240.17a-5(d)(l) and (4). Starlight Funding Investments, LLC files an exemption report because our company provides private placements of debt and equity securities of corporation .and other entities, during the report period Starlight Funding Investments, LLC (a) did not directly or indirectly receive, hold and or otherwise owe funds or securities for to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b )(2) of rule 15c2-4; (b) did not carry account of or for customers; and (c) did not carry PAB account (as defined in rule 15c3-3. #### 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 Commission is recognized when the transaction is closed. # 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 {10}------------------------------------------------ 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 Instruments 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, 2020, through the date that these financial statements were available to be issued and 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 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. On December 31, 2019, the Company had net capital of\$8,989.6-8; which was \$3,990.00 in excess ofits net capital requirement of\$5,000. The Company's net capital ratio was .97 to 1. ## Note 3 - Possession of Control Requirements Starlight Funding Investments, LLC (a) did not directly or indirectly receive, hold and or otherwise owe funds or securities for to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b )(2) of rule 15c2-4; (b) did not carry account of or for customers; and ( c) did not carry PAB account (as defined in rule 15c3-3). There were no material inadequacies in the procedures followed in adhering to the exemptive provision # Note 4 - Contingencies {11}------------------------------------------------ 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 Rent expense in 2020 was \$74.03. {12}------------------------------------------------ # **STARLIGHT FUNDING INVESTMENTS, LLC** # **Schedule I: Computation of Net Capital Pursuant to Rule 17a-5 December 31, 2020** | Computation of Net Capital | | |----------------------------------------------------|-------------| | Total member's equity qualified for net capital | \$ 11,657 | | Deductions and/or charges | -7,650 | | Non-allowable assets: | | | Accounts Receivable | 9,025 | | Intecompany Receivable | | | Prepaid expenses | 1,292 | | Net Capital | \$
8 990 | | Aggregate indebtedness | | | Accounts payable | \$
8 730 | | Total aggregate indebtedness | \$ | | 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 | 3,990
\$ | | Ratio of aggregate indebtedness to net capital | .97 to 1 | See accountant's audit report. There are no 1naterial differences between the above computation and the computation included in the Cmnpanfs corresponding unaudited Form X-17 A-5 Part IIA filing. {13}------------------------------------------------ # **STARLIGHT FUNDING INVESTMENTS, LLC Schedule** II: **Statement Regarding Changes in Liabilities Subordinated to Claims of General Claims December 31, 2020** No statement is required as no subordinated liabilities existed at any time during the year. {14}------------------------------------------------ # **STARLIGHT FUNDING INVESTMENTS, LLC Schedule** III: **Statement Regarding the Exemption from Reserve Requirements and Possession and Control Requirements December 31, 2020** Starlight Funding Investments, LLC files an exemption report because our company provides private placements of debt and equity securities of corporation and other entities, during the report period Starlight Funding Investments, LLC (a) did not directly or indirectly receive, hold and or otherwise owe funds or securities for to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of rule 15c2-4; (b) did not carry account of or for customers; and ( c) did not carry P AB account ( as defined in rule 15c3-3); and Starlight Funding Investments, LLC. {15}------------------------------------------------ # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Starlight Funding Investments, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Starlight Funding Investments, LLC states that the Company file an exemption report because The Company provides private placements of debt and equity securities of corporation and other entities; during the report period the firm (a) did not directly or indirectly receive, hold and or otherwise owe funds or securities for to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4; (b)did not carry accounts of or for customers; and (c) did not carry PAS account (as defined in Rule 15c3-3); and (2) Starlight Funding Investments, LLC stated that Starlight Funding Investments, LLC met the identified exemption provisions throughout the year ended December 31,2020 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 Rule 15c3-3 under the Securities Exchange Act of 1934. Jennifer Wray CPA PLLC Sugar Land, Texas. 2/25/2021 {16}------------------------------------------------ # INVESTMENTS, LLC STARLIGHT FUNDING 1307 Bonita Avenue Berkeley, CA 94709 Tel: (510) 527'-6954 Fax: (510) 52%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 Securiti.es and Exchange Commission (17 C.F.R §240.17a-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)(1) and (4). To the best of its knowledge and belief, the Company states the following: Starlight Funding Investments, LLC files an exemption report because our company provides private placements of debt and equity securities of corporation and other entities, during the report period Starlight Funding Investments, LLC (a) did not directly or indirectly receive, hold and or otherwise owe fonds or securities for to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of rule 15c2~4; (b) did not carry account of or for customers; and ( c) did not carry PAB account (as defined in rule l 5c3~3); and Starlight Funding Investments, LLC met the identified exemption provisions throughout the year ended DecemberJ 1,2020. # **Starlight Funding lnvestments, LLC.** £, Maria Dembski., swear (or affim1}that, to my best knowledge and belief, this Exemption Report is true and correct. Maria Dembski, CFO February 11, 2021 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.