# STARLIGHT FUNDING INVESTMENTS, LLC X-17A-5 (2023-03-20) — Broker-dealer annual report - Company: STARLIGHT FUNDING INVESTMENTS, LLC - Form: X-17A-5 - Filed: 2023-03-20 - Period: 2019-12-31 - Accession: 0001109155-23-000002 - CIK: 1109155 - File #: 8-52424 - Type: Broker-dealer - 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/1109155/000110915523000002/2019SFILLCfinalaudit.pdf --- {0}------------------------------------------------ **UNITEDSTATF.S SECURITIESANDEXCHANGECOMMISSION Wasbington,D.C. 20549** 0MB APPROVAL · 0MB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours per resoonse •••.•. 12.00 # **ANNUAL AUDITED REPORT FORM X-17A-5 PART** Ill # SEC FILE NUMBER s-52424 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 BEGINNING01/01/2019 | | | AND ENDING 12/31/2019 | | | |------------------------------------------------------------------------------------------|-------------------------------------------------------|-------------------|--------------------------------|--|--| | | MM/DDIYY | | MM/DDIYY | | | | | 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 1.O.NO. | | | | 1307 Bonita Avenue | | | | | | | | (No. and Street) | | | | | | Berkeley | | | 94709 | | | | (City) | (State) | | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO TIDS REPORT
Marta Dembskl | | | 510-527-6954 | | | | | | | (An:a Code - Telephone Number) | | | | | 8. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report• | | | | | | | Jennifer Wray CPA PLLC | | | | | | | | (Name - if individual, state last, /int, middle name) | | | | | | 16418 Beewood Glen Dr | Sugar land | TX | 77498 | | | | (Address) | (City) | (State) | (Zip Code) | | | | CHECK ONE: | | | | | | | Certified Public Accountant | | | | | | | Public Accouniant | | | | | | | §
Accountant not ~sident in United Statet:-or any of its possessions. | | | | | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | *•Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of/acts and circumstances relied on as the basis for the exemption. See Section 240.l7a-5(e)(2)* > **PotenOal peraons who are to respond to tl)e collection of Information contained In this form are not required to respond unless the form displays a currently valid OMBcontrol number.** SEC 1410 (11-05) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | 1, Maria Dembski | | | . swear (or affirm) that. to the best of | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------------------|----------------------------------------------------------| | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
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Starlight Funding Investments, LLC
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, as | | of December 31 | __
20_1_9 | | ~ are true and correct. I further swear (or affirm) that | | neither the company nor any partner, proprietor, principal officer or director bas any proprietary interest in any account | | | | | classified solely as that of a customer, except as follows: | | | | | | | | | | | | | | | ~~~'f\$J.1
CHYENNE MEYERS
,,.,_,
~f{~~§ Not
ary Public, State of Texas | | Signature | | | ;~-.)'~Iii\ ;;~ Comm. Expires 06-26-2022 | | Maria Dembski, CFO | | | -:.,,~flf;t,~'
Notary ID 131619462
., | | Title | | | | | | | | | | | | | | | | | | This report ** conta(ns (check
[a (a) Facing Page.
| | | | | [a (b) 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 §2 I 0.1-02 of Regulation S-X). | | | | | ., (d) Statement of Changes in Financial Condition. | | | | | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
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(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | | | | ~
(g) Computation of Net Capital. | | | | | (h) Computation for Determination of Reserve Re~uirements Pursuant to Rule I 5c3-3.
.,, | | | | | ~ (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3.
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[a U) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule I 5c3-I and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3. | | | | | D (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
consolidation. | | | | | [a (I) An Oath or Affirmation.
D (m) A copy of the SJPC Supplemental Report. | | | | | D (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | | | | **For conditions of confidential treatment of certclin portions of this filing, see section 240. I 7a-5(e)(3). | | | | {2}------------------------------------------------ #### STARLIGHT FUNDING lNVESTMENTS, LLC Financial Statements and Supplemental Schedu les For the Year Ended December 3 l , 2019 {3}------------------------------------------------ # **CONTENTS** | FINANCIAL STATEMENTS | | |---------------------------------------------------------|-----| | Report of Independent Registered Public Accounting Firm | | | Statement of Financial Condition | 3 | | Statement of Operations | 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 17A-5 | | | Schedule I-Computation of Net Capital | 10 | | | | 11 12 Exemption Report {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, 2019, the related statements of income, changes in member's equity, and cash flows for the 2019 then ended, 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 , 2019 and the results of its operations and its cash flows for the 20,19 then ended 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 on the pages 10 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 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 27, 2020 {5}------------------------------------------------ # **Starlight Funding Investments Statement of Financial Condition A,;; of Decem her 31, 2019** | ASSETS | | |---------------------------------------|--------------| | Cash | \$
41,754 | | Accounts receivable | | | Prepaid expenses | 1,292 | | TOT AL ASSETS | \$
43,046 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities | | | Accounts payable | \$
16,567 | | TOTAL LIABILITIES | 16,567 | | Member's Equity | 26 479 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
43,046 | The accompanying notes are an integral part of these financial statement~ {6}------------------------------------------------ # **Starlight Funding Investments, LLC Statement of Operation Year Ended December 31, 2019** #### **Revenue** | Advisory Fee Income | \$
76,500 | |----------------------------|------------------| | Private Palcements | \$
70,375 | | Success Fee Income | \$
75,642 | | Other | 4 626 | | TOTAL REVENUE | 227 14? | | Expenses | | | Commissions expense | 153,557 | | Licensing and registration | 5,408 | | Occupancy | | | Professional fees | 35,843 | | Other expenses | 8,970 | | TOTAL EXPENSES | 203 778 | | Net Income | \$
23
,364 | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ ### **Starlight Funding Investments Statement of Changes in Member's Equity Year Ended December 31, 2019** | | Total | |-----------------------------------|--------------| | Balances at December 31
, 2018 | \$
17,941 | | Contributions from member - cash | 3.174 | | Member Distribution | (18,000) | | Net Ga in | 23364 | | Balances at December 31, 2019 | \$
26,479 | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ #### **Starlight Funding Investments Statement of Cash Flows Year Ended December 31, 2019** | | | TOTAL | |----------------------------------------------------------------------------------------------------|----|------------| | OPERA TING ACTTVTTTES | | | | Net Income
Adjustments to reconcile net income to net cash provided by (used in)
operations: | \$ | 23,364 | | Accounts Receivable -
Non-customer | | | | Accounts receivables others | | 0 | | Prepaid Expenses | | 1,004 | | Accrued Professional Fees | | 190 | | Accounts Payable | | 15,992 | | Total adjustments to reconcile Net Income to Net Cash provided by | | 17,185 | | Net cash provided by (used in) operating activities | \$ | 40,549 | | FINANCING ACTIVITIES | | | | Member Capital | | 3,
174 | | Member Distribution | | (18,000) | | Net cash provided by financing activities | | (\$14,826) | | Net cash increase for period | \$ | 25,724 | | Cash at beginning of period | \$ | 16,031 | | Cash at end of period | i | 41,755 | The accompanying notes are an integral part of these financial statements. {9}------------------------------------------------ #### **STARLIGHT FUNDING INVESTMENTS, LLC Notes to Financial Statements December 31, 2019** # **Note 1 - Nature of Business and Summary of Significant Accounting Policjes** ### Nature of Business: Starlight Funding Tnvestments, 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 ofFlNRA. 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 I iabi I ities. ### 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. lf amounts become uncollectible, they will be charged to operations when that determination is made. ### Revenue Recognition The Company earns the commission through the private placement of debt and equity securities of corporation and other entities. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine when performance obligations are satisfied at a point in time or over time; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. Management believes that the performance obligation is satisfied on the closing date of a placement of securities because that is when the underlying financial instrument is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. {10}------------------------------------------------ # **STARLIGHT FUNDING INVESTMENTS, LLC Notes to Financial Statements December 31, 2019** # 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 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 acquisiti.ons, private capital formations. fairness opinions and business valuations. ### Subseguent Events Management has evaluated the Company's events and transactions that occurred subsequent to December 31. 2018, through February 27, 2020; 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. {11}------------------------------------------------ #### **STARLIGHT FUNDING INVESTMENTS, LLC Notes to Financial Statements December 31, 2019** #### Note 2 - Net Capital Requirements The Company is subject to the SEC Uniform Net Capital Rule (Rule I 5c3-I), 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 I 5c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed IO to 1. At December 31, 2019, the Company had net capital of \$25,186.88, which was \$20,186.88 in excess of its net capital requirement of \$5,000. The Company's net capital ratio was .66 to I. #### Note 3 - Possession of Control Requirements The Company does not have any possession or control of customer's funds or securities. There was no material inadequacies in the procedures followed in 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, resu Its, of operations, or cash flows of the Company. Note 5 - Rent There was no rent expense in 2019. {12}------------------------------------------------ #### **STARLIGHT FUNDING INVESTMENTS, LLC Supplemental Information Pursuant to Rule l 7a-5 December 31, 2019** | Computation of Net Capital | | |----------------------------------------------------------------------------------------------------|-------------------------| | Total member's equity qualified for net capital | \$ 26.479 | | Deductions and/or charges
Non-allowable assets: | | | Accounts Receivable
lntecompany Receivable | | | Prepaid expenses | \$1,292 | | Net Capital | \$25,187 | | Aggregate indebtedness | | | Accounts payable | \$ .1.§lli
\$ 16 567 | | Total aggregate indebtedness | | | Computation of basic net capital requirement
Minimum net capital required (greater of\$5,000 or | | | 6 2/3% of aggregate indebtedness) | | | Net capital in excess of minimum requirement
Ratio of aggregate indebtedness to net capital | \$ 20 187
.66 to 1 | {13}------------------------------------------------ # **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 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) (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. Jennifer Wray CPA PLLC Sugar Land, Texas. Feb 27, 2020 {14}------------------------------------------------ #### **STARLIGHT FUNDING** 1307 Bonita Avenue Berkeley, CA 94709 Tel: {510} 527-6954 Fax: {510) 527-7530 **INVESTMENTS, LLC** ### **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. l 5c3-3 (k)(2)(i) - (2) The Company met the identified exemption provision in 17 C.F.R. § 240.l5c3-3(k)(2)(i) throughout the most recent fiscal year without exception ### **Starlight Funding Investments, LLC.** I, Maria Dembski, swear (or affim1) that, to my best knowledge and belief, this Exemption Rep011 is true and co1Tect. Maria Dembski, CFO February 17, 2020 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.