# BROAD STREET CAPITAL MARKETS, LLC X-17A-5 (2022-09-28) — Broker-dealer annual report
- Company: BROAD STREET CAPITAL MARKETS, LLC
- Form: X-17A-5
- Filed: 2022-09-28
- Period: 2022-06-30
- Accession: 0001111585-22-000003
- CIK: 1111585
- File #: 8-52487
- Type: Broker-dealer
- Material weakness: No
- Auditor: RBSM LLP
- Auditor location: New York, NY
- Contact: William Rankel
- Phone: 9172252478
- Website: rbsmllp.com
- Signed by: Andrew Adderly (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1111585/000111158522000003/broadstreetafspublic.pdf
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## BROAD STREET CAPITAL MARKETS, LLC
Statement of Financial Condition June 30, 2022 And Independent Auditors' Report
This report is filed as a PUBLIC document in accordance with rule 17a-5(e)(3) under the Securities Exchange Act of 1934.
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| UNITED STATES SECURITIES AND EXCHANGE
COMMISSION Washington, o.c. 20549
ANNUAL REPORTS | |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| | 0MB Number. 3235-0123
Explres: Oct. 31, 2023
Estimated average burden |
| | hours per response: 12 |
| FORM X-17A-S | SEC FILE NUMBER |
| PART Ill | 8-52487
- |
| FACING PAGE | |
| Information Required Pursuani to Rule\$ 17a-S, 17a-12) and 18a-7 under the Securities Exchange | -Act of 1934 |
| __
___
07/01/2021.
FILING FOR THE PERIOD BEGINNING | __
06/30/202.2_
AND ENDING |
| MM/00/VY | MM/DD/VY |
| A. REGISTRANT IDENTIFICATION | |
| | LLC'------------------ |
| NAME OF FIRM: _Broad Street Capital Markets, | |
| TYPE OF REGISTRANT (check all applicable boxes): | |
| ~ Broker-deale.r O Security-based swap dealer D Major secutity-based swap partidpant | |
| 0 Check here if respondent is also an OTC derivatives dealer | |
| | |
| | |
| | |
| | |
| _________________________
(No. and Street) | _ |
| | |
| ________________
,New Jersey
(State}
(City) | __
_________
07102
_
(Zip Code) |
| | |
| 917 225 2478 | _
b11l@)finopsvcs.com |
| ______
________
(Area Code-Telephone Number) | ___
(Email Address) |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
494 Broad Street-Suite 206.
Newark.
PERSON TO CONTACT WITH REGARD TO THIS FILING
William E Ranke1
(Name)
8. ACCOUNTANT IDENTIFICATION | |
| | |
| | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
______________________________
RBSM LLP
{Name - if individual, state last, first, and middle name) | _ |
| | |
| ____
_____
805 Third Avenue - Ste 1430
__,New York
(Address)
{City) | __
___
10022
_NY
_
(State)
(Zip Code) |
| | |
| ____________________
_09/24/2003
(Date of Registration with PCAOB)(lf applicable) | ______
_
,587
(PCAOB Registration Number, If applicable) |
• Claims for exemption from the requirement that the annual reports be covered by the reports of an lndep,endent public accountant must be supported by a statement of facts and circumstances relJed on as the basls of the .exemption. See 17 CFR 240.17a-5(e)(l)(ii), if applicable.
Persons who are to respond to the collection of Information contained In this form are not reqwed to rHpond unless the form displays a currently valid 0MB control number.
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#### OATH OR AFFIRMATION
| I, Andrew Adderly | | • swear (or affirm) that, to the best of my knowledge and belief, the financial |
|--------------------------------------------------------------------------------------------------------------------------------|--------------------------|---------------------------------------------------------------------------------|
| report perta1ning to the firm of Broad Street Capital Markets, UC | as of June 30 | 2022, is true and |
| correct. I further swear (or affirm} that neither the company nor any partner, officer, directer, or equivalent person, as the | | |
| ,
has any prop,;eu,y ;me,est
case may be | ;::dassmedsokel::.:8~~m: | |
| | | |
*~-<* (\ "~ --~~ Title~· *ltt001.c,ilwb-,-..Ju;,11,IJ#.1* \_cE\_o \_\_\_\_\_\_\_\_\_\_\_\_\_ \_
| y as that of a castomer . | | |
|---------------------------|--|--|
| Signature: | | |
| Title | | |
| CEO | | |
Notary Public
#### This filing\*\* **contains (check all applicable boxes}:**
- 8J (a) Statement of financial condition.
- ~ (b) Notes to consolidated statement of financial condition.
- 0 (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§ 210.1-02 of Regulation S-X).
- D (d) Statement of cash flows.
- D (e} Statement of changes in stockholders' or partners' or sole proprietor's equity.
- D (f) Statement of changes In liabilities subordinated to claims of creditors.
- D {g) Notes to consolidated financial statements.
- D (h) Computation of net capital under 17 CFR 240.15c3-l or 17 CFR 240.lSa-1, as applicable.
- 0 (i) Computation of tangible net worth under 17 CFR 240.lSa-2.
- 0 (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.lSa-4, as applicable.
- D (I) Computation for Determination of PAB Requirements under Exhi.bit A to § 240.15c3-3.
- 0 (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- (n} Information relating to possession or control requiremenis for security-based swap customers under *11* CFR 240.15c3-3(p)(2) or 17 CFR 240.lSa-4, as applicable.
- D (o) Reconciliations, focludlng appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.lSa-4, as applicable, if material differences exist, or a statement that no material differences exist.
- D (p} Summary of financial data for subsidiaries not consolidated in *the* statement of financial condition.
- **g** (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable.
- D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- D (s} Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable.
- ~ (t) Independent public accountant's report based on an examination of the statement of financial condition.
- 0 (u} Independent public accountant's report based on an examination of the financial report or financial statements unde.r 17 CFR 240.17a-5, 17 CFR 240.lSa-7, or 17-CFR 240.17a-12, as applicable.
- D (v} Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable.
- 0 (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable.
- D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable.
- 0 (y} Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). 0(z) Other: \_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_
-
- uro *request* confidencial *treatment of certain port.ions of this* filing, *see* 17'CFR 240.17o--S(e){3) *or* 17 CFR 240.18a-7(d)(2), *as* applicable.
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805 Third Avenue 14th Floor New York, NY 10022 212.838.5100 212.838.2676/ Fax www.rbsmllp.com
#### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Member of Broad Street Capital Markets, LLC. Newark, New Jersey
#### *Opinion on the Financial Statements*
We have audited the accompanying statement of financial condition of Broad Street Capital Markets, LLC as of June 30, 2022, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Broad Street Capital Markets, LLC as of June 30, 2022 in conformity with accounting principles generally accepted in the United States of America.
#### *Basis for Opinion*
This financial statement is the responsibility of Broad Street Capital Markets, LLC's management. Our responsibility is to express an opinion on Broad Street Capital Markets, LLC's 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 Broad Street Capital Markets, 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 statement is 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 statement, 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.
We have served as the Company's auditor since 2019.
New York, NY September 28, 2022
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# **Broad Street Capital Markets, LLC Statement of Financial Condition June 30 2022**
| Assets | |
|-------------------------------------------------------------------------------|-----------------|
| Cash | \$
221,966 |
| Commissions and other receivables from clearing broker | 1,876,410 |
| Deposit with clearing brokers | 150,000 |
| Fixed assets, net of accumulated depreciation
and amortization of \$39,338 | 3,053 |
| Other assets | 31,238 |
| Operating lease right-of-use asset | 10,140 |
| | |
| Total assets | \$
2,292,807 |
| Liabilities and Member's Equity | |
| Current Liabilities | |
| Commissions payable to independent contractors | \$
1,660,624 |
| Compensation payable to officer | 89,900 |
| Loan principal and interest payable to U.S. Small Business Administration | 83,437 |
| Accrued commission rebates and execution fees | 68,595 |
| Accrued professional fees | 19,000 |
| Other accrued liabilities | 53,274 |
| Operating lease liability | 11,262 |
| | 1,986,092 |
| Commitments and contingencies | |
| Member's equity | 306,715 |
| Total liabilities and member's equity | \$
2,292,807 |
See notes to statement of financial condition.
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### **1. Organization**
Broad Street Capital Markets, LLC (the "Company") is an Indiana limited liability company registered as a broker-dealer with the Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority, Inc. ("FINRA'). The Company is wholly owned by Bergen Capital Advisors LLC, ("Bergen") a New Jersey limited liability company.
## **2. Summary of Significant Accounting Policies**
## **Basis of Presentation**
The accounting and reporting policies and accompanying financial statements of the Company conform to accounting principles generally accepted in the United States of America ("GAAP") as followed by the securities broker-dealer industry.
## **Use of Estimates**
The preparation of financial statements in conformity with GAAP 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. Actual results could differ from those estimates.
### **Cash Equivalents**
The Company maintains deposits in financial institutions that at times exceeded the insured amount of \$250,000 provided by the Federal Deposit Insurance Corporation (FDIC).
### **Fixed Assets**
Fixed assets are stated at cost, less accumulated depreciation, and amortization. Furniture and equipment are depreciated on a straight-line basis based over their estimated useful lives of five to seven years. Leasehold improvements are amortized on a straight-line basis over the shorter of the asset life or the length of the lease.
#### **Income Taxes**
The Company is a disregarded entity for Federal and state income tax purposes as its results of operations are included in Bergen's income tax filings and, accordingly, it does not record an income tax provision.
## **Accounting for Uncertainty in Income Taxes**
The Company recognizes the effect of income tax positions only when they are more likely than not to be sustained. The Company is no longer subject to U.S. federal and state income tax examinations for periods commencing prior to July 1, 2018.
## **Recent Accounting Pronouncements**
The Company has reviewed recently issued accounting pronouncements and determined that they will not have a material impact on the Company's financial statements.
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## **Broad Street Capital Markets, LLC Notes to Statement of Financial Condition Year Ended June 30, 2022**
## **3. Clearing Broker**
The Company introduces its customers on a fully disclosed basis to RBC Correspondent Services, a division of RBC Capital Markets, LLC ("RBC") who it also uses to clear its proprietary securities transactions. In accordance with its clearing agreement with RBC, the Company maintains a clearing deposit of \$50,000. The Company entered into a new clearing agreement with Axos Clearing LLC ("AXOS") on April 22, 2022 and began introducing its customers on a fully disclosed basis and clearing its proprietary securities transactions through AXOS June 2022. In accordance with its clearing agreement with AXOS, the Company maintains a clearing deposit of \$100,000.
### **4. Fixed Assets**
The following table shows the balances of major classes of fixed assets and the accumulated depreciation and amortization for each class at June 30, 2022:
| | Accumulated | | | | | |
|------------------------|-------------|--------|----|-----------------------------|----|-------|
| | | Cost | | Depreciation/ Arrortization | | Net |
| Leasehold improvem:mts | \$ | 16,433 | \$ | 15,758 | \$ | 675 |
| Furniture | | 14,265 | | 11,887 | | 2,378 |
| Equiprrent | | 11,693 | | 11,693 | | |
| | \$ | 42,391 | \$ | 39,338 | \$ | 3,053 |
### **5. U.S. Small Business Administration ("SBA") Loans**
On July 1, 2020, the Company borrowed \$150,000 for 30 years from the SBA to provide working capital and offset economic injury caused by the COVID-19 pandemic. Interest is provided at 3.75%/annum with the initial payment due July 1, 2021 and the loan's principal is payable at the end of the term. \$75,000 of the principal of the loan was paid down January 2022.
#### **6. Net Capital Requirements**
The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-l, the "Rule"), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, as both defined, shall not exceed 15 to 1. In accordance with the Rule, the Company is required to maintain defined minimum net capital equal to the greater of \$5,000 or 1/15 of aggregate indebtedness.
At June 30, 2022, the Company had net capital, as defined, of \$272,424 which exceeded the required minimum net capital of \$131,730 by \$140,694. Aggregate indebtedness at June 30, 2022 totaled \$1 ,975,952. The percentage of aggregate indebtedness to net capital was 725%.
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## **Broad Street Capital Markets, LLC Notes to Statement of Financial Condition Year Ended June 30, 2022**
## **7. Commitments and Contingencies**
The Company recognizes a right-of-use asset and a lease liability on its office lease which expires in September, 2022 and obligates the Company to make minimum future rental payments of \$11,450. The right-of-use asset is measured at cost which equals the amount of the lease liability and is depreciated using a straight-line method over the lease term. The lease liability is measured at the present value of the unpaid lease payments discounted at 10%/annum which the Company considers to be its approximate incremental borrowing rate. In connection with the office lease, the Company has posted a security deposit of \$6,747.
The Company entered into a new 1-year annual renewal lease agreement effective July 2022. In connection with this new lease, the Company has posted a security deposit of \$700.
#### **8. Related Party Transactions**
The accompanying statement of financial condition reflects a payable to the Company's Chief Executive Officer ("CEO") of \$89,900.
### **9. Income Taxes**
As of June 30, 2022, the Company had no uncertain tax positions that require recognition or disclosure in the financial statements.
#### **10. Coronavirus**
The outbreak oof the novel coronavirus has adversely impacted global commercial activity and contributed to significant volatility in financial markets. The coronavirus pandemic and government responses are creating disruption in the global economy and adversely impacting many industries, including the financial services industry.
As a result of the pandemic, management evaluated the COVID-19 pandemic and its impact on the financial services industry and has concluded that while it is reasonably possible that the virus could have had a negative effect on the Company's operations, the specific impact is not readily determinable as of the date of these financial statements and, accordingly, these financial statements do not include ant adjustments that might result from the outcome of this uncertainty.
#### **11. Evaluation of Subsequent Events**
The Company has evaluated subsequent events through September 28, 2022, the date the financial statements were available for issuance.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.