# REVA CAPITAL MARKETS LLC X-17A-5 (2021-04-15) — Broker-dealer annual report - Company: REVA CAPITAL MARKETS LLC - Form: X-17A-5 - Filed: 2021-04-15 - Period: 2020-12-31 - Accession: 0001127860-21-000002 - CIK: 1127860 - File #: 8-52985 - Material weakness: No - Auditor: Berkower LLC - Auditor location: Iselin, NJ - Contact: Vageesh Naik - Phone: 2124647363 - Signed by: Vageesh Naik (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1127860/000112786021000002/converted.pdf --- {0}------------------------------------------------ | 12, 25, 25, 1 | | |---------------|----------------------------------| | | | | | | | | REYA CAPITAL MARKETS, LLC | | | STATEMENT OF FINANCIAL CONDITION | | | DECEMBER 31, 2020 | | | | | | | | | | | | | | | PUBLIC | | | | | | | {1}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Estimated average burden hours per response .. . . . . . 12.00 SEC FILE NUMBER 8-52985 ## 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 | MM/DD/YY
MM/DD/Y Y
A. REGISTRANT IDENTIFICATION
NAME OF BROKER-DEALER: REVA CAPITIAL MARKETS, LLC
OFFICIAL USE ONLY
ADDRESS OF PRINCIPAL PLACE OF BUSINES\$: (Do not use P.O. Box No.)
FIRM I.D. NO.
3 Columbus Circle - 15th Fl.
(No. and Street)
NY
10019
New York
(State)
(Zip Code)
(City)
್ನು ನಿ
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
(212) 484-7383
VAGEESH NAIK
B. ACCOUNTANT IDENTIFICATION
.
INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report®
BERKOWER LLC | report for the period beginning January 1, 2020 | | | AND ENDING December 31, 2020 | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|--|--|------------------------------|--| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Area Code - Telephone Number) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Name - if individual, state last, first. middle name) | | | | | | | SELIN
517 ROUT ONE, STE. 4103
NJ
08830 | | | | | | | (City)
(State)
(Address)
(Zip Code)
12 1 | | | | | | | CHECK ONE: | | | | | | | Certified Public Accountant | | | | | | | Public Accountant | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | ાં છે. ગુ | | | | | | | | | | | | | \*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 facts and circumstances relied on as the basis for the exemption. See Section 240.170-5(e)(2) ![](_page_1_Picture_7.jpeg) Potential persons who are to respond to the collection of information contained in this form are not required to response {2}------------------------------------------------ # OATII OR AFFIRMATION | VAGEESH NAIK | . swear (or affirm) that, to the best of | |-------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------| | REVA CAPITAL MARKETS LLC | my knowledge and belief the accompany ing financial statement and supporting schedules pertaining to the firm of | | of DECEMBER 31 | . 20 20
. are true and correct. I further swear (or affirm) that | | | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | classified solely as that of a customer, except as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Signature | | | ARTHUR MIGUT CHIEF ERESUTIVE OFFICER | | | Noiary Trublic. - State of New York
Title
NO. 01/16388049 | | | Qualified in Kings County
My Cominission Expires Feb 25, 2023 | | Notary Public | | | | | | This report ** contains (check all applicable boxes):
(a) Facing Page. | | | (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 §210.1-02 of Regulation S-X). | | | (d) Statement of Changes in Financial Condition.
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | | (g) Computation of Net Capital. | | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | (i) Information Relating to the Possession on Control Requirements Under Rule 15c3-3. | (j) A Reconciliation, including appropriate explanation of Net Capital Under Rule 1.5c3-1 and the | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | [] (k) A Reconciliation between the audited Statements of Financial Condition with respect to nethods of | | consolidation. | | | (I) An Oath or Affirmation. | | | (m) A copy of the SIPC Supplemental Report, | (n) A report describing any material inadequaties found to have existed since the date of the previous audit. | | | | | | ** For conditions of confidential treatment of certpin portions of this filing, see section 240.1 ~~-Sterl3). | | | | | | | | | | | | | | | | | | | ﻤﺴﺘ . . . ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 18-11-22 {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) #### **REPORT OF INDEPENDENT EGISTERED PUBLIC ACCOUNTING FIRM** To the Sole Member of Reva Capital Markets LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of 1nancial condition of Reva Capital Markets LLC (the "Company") as of December 31, 2020 and the related notes ( c llectively referred to as the "Financial Statement"). In our opinion, the Financial Statement presents fairly, in all faterial 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 I This Financial Statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's Financial Statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Boart (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance wit the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Com ission and the PCAOB. We conducted our audit in accordance with the tandards 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 Stateme~f. 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 Statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, a~ well as evaluating the overall presentation of the Financial Statement. We believe that our audit provides a r easonable basis for our opinion. 1 We have served as the Company's auditor since 2018. 1JP ✓ 1,,-~ Berkower LLC lselin, New Jersey April 14, 2021 Miami• Los Angeles • Cayman Islands {4}------------------------------------------------ ### RE~A CAPITAL MARKETS, LLC I ### STATE ENT OF FINANCIAL CONDITION | | DECEMBER 31, 2020 | | |------------------------------------------------------|---------------------------------|------------------------| | | | | | | ASSETS | | | Cash
Other assets | | \$
26,975
10,448 | | TOTAL ASSETS | | \$
37,423 | | | | | | | LIA ILITIES AND MEMBER'S EQUITY | | | LIABILITIES
Accrued expenses and othe liabilities | | \$
7,798 | | MEMBER'S EQUITY | | 29,625 | | TOTAL LIABILITIES AND | EMBER'S EQUITY | \$
37,423 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The accompanying notes are a integral part of this statement. {5}------------------------------------------------ ### RHVA CAPITAL MARKETS, LLC ### NOTES TO +ATEMENT OF FINANCIAL CONDITION ### FOR THE YEAR ENDED DECEMBER 31, 2020 ### **Note 1** - **Organization and natu e of business:** Reva Capital Markets, LLC (th "Company"), a wholly owned subsidiary of Reva Capital Holdings, LLC (the "Parent"), c menced operations as a broker-dealer on December 14, 2000. As such, the Company is registered with the Securities and Exchange Commission (the "SEC") and a member of he Financial Industry Regulatory Authority ("FINRA"). The Company is registered in twenty- hree states. The Company's operations con ist primarily of engaging in transactions involving private placements of securities exemp from registration. In addition, the Company also provides pricing, valuation and consulting in connection with the purchase and sale of asset-backed securities, mortgage-backed se urities, collateralized debt obligations, collateralized loan obligations, and commercial m rtgage backed securities. The accompanying financial st tements have been prepared from the separate records maintained by the Company an , due to certain transactions and agreements with affiliated entities, may not necessarily be ndicative of the financial condition that would have existed or the results that would have b en obtained from operations had the Company operated as an unaffiliated entity. The Company's policy is to co tinuously monitor its exposure to market and counterparty risk through the use of a ariety of financial position and credit exposure reporting and control procedures. In ad ition, the Company has a policy of reviewing the credit standing of each broker-de ler, clearing organization, customer and/or other counterparty with which it cond cts business. ### **Note 2** - **Significant accounting** #### **Cash and cash equivalents:** Financial instruments which pate tially subject the Company to concentrations of credit risk consist primarily of cash and c sh equivalents. The Company considers all highly liquid debt instruments with an origin I maturity of three months or less when purchased to be cash equivalents. As of Decem er 31, 2020, the Company maintained its cash at one financial institution located in th United States of America. The Company had no cash equivalents at that date. #### **Revenue recognition:** Effective January 1, 2018, th Company adopted ASC Topic 606, Revenue from Contracts with Customers ("AS Topic 606"). The new revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or {6}------------------------------------------------ ### R VA CAPITAL MARKETS, LLC ### NOTES TO STAT MENT OF FINANCIAL CONDITION (continued) ### FOR THE EAR ENDED DECEMBER 31, 2020 services to customers in an a cunt that reflects the consideration to which the entity expects to be entitled in exch nge for those goods or services. The guidance requires an entity to follow a five-step odel to (a) identify the contract(s) with a customer, (b) identify the performance oblig tions in the contract, (c) determine the transaction price, ( d) allocate the transaction pri e to the performance obligations in the contract, and ( e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction pri e, an entity may include variable consideration only to the extent that it is probable hat a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The Company applied the modified retrospective method of adoption which resulted in no a justment to retained earnings as of January 1, 2018. The Company recognizes fee i come as earned. Fee income is earned at the time the related services are provided an when the right to receive payment is assured, as defined by the terms and conditions of e ch client agreement. On January 1, 2020, the Comp ny adopted FASB ASC 326 - "Financial Instruments - Credit Losses" ("ASC Topic 3 611 ) which replaces the incurred loss methodology with the current expected credit loss ("CECL") methodology. The Company's policy is to record an estimate of expected credit losses as an allowance for credit losses. The new CECL standard became effecti e on January 1, 2020 and had no impact on the Company as of that date. #### **Income taxes:** The Company is a single mem er limited liability company and, as such, is treated as a disregarded entity and is not subj ct to income taxes. FASB provides guidance for how uncertain tax positions should be recognized, measured, disclosed and pre ented in the financial statements. This requires the evaluation of tax positions takeEor expected to be taken in the course of preparing the Company's tax returns to deter ine whether the tax positions are "more-likely-than-not" of being sustained "when ch llenged" or "when examined" by the applicable tax authority. Tax positions not dee ed to meet the more-likely-than-not threshold would be recorded as a tax benefit or exp nse and liability in the current year. For the year ended December 31, 2020 managem nt has determined that there are no material uncertain income tax positions. #### **Use of estimates:** The Company maintains its bo ks and records on an accrual basis in accordance with accounting principles generally ccepted in the United States of America which require management to make estimate and assumptions in determining the reported amounts of assets and liabilities and dis losure of contingent assets and liabilities at the date of the financial statements. Actual [results could differ from these estimates. I {7}------------------------------------------------ ### R VA CAPITAL MARKETS, LLC ### NOTES TO STAT MENT OF FINANCIAL CONDITION (continued) ## FOR THE EAR ENDED DECEMBER 31, 2020 ### **Note 3** - **Related party transact ons:** For the year ended Decembe 31, 2020, the Company shared office space with the Parent. In accordance with an e pense sharing agreement (the "Agreement"), the Parent allocates a percentage of the re t and certain other overhead and administrative expenses to the Company. At times, the ompany pays the expenses to the vendor. The Statement of Operations includes the ren expense of \$23,070 which was paid in cash and other operating expenses of \$9,883 hich were recorded as capital contributions by the Parent. The Parent has adequate resou ces independent of the Company to pay these expenses, and the Company has no additio al obligation, either direct or indirect, to compensate a third party for these expenses. #### **Note 4** - **Due from broker:** The Company does not conduc business that requires the services of a clearing broker. ### **Note 5** - **Liabilities subordinat d to the claims of general creditors** As of December 31, 2020, th Company had not entered into any subordinated loan agreements. #### **Note 6** - **Commitments and c ntingent liabilities** The Company had no underwr ting commitments, no contingent liabilities and had not been named as defendant in a y lawsuit at December 31, 2020 or during the year then ended. #### **Note 7** - **Net capital requiremen** : The Company is subject to sEl Uniform Net Capital Rule 15c3-1, which requires the maintenance of minimum net ca~ital and requires that the ratio of aggregate indebtedness to net c~pital, ~oth as defined, s~~II not exceed 15 to~. I~ a~dition, ~he\_ Rule also provides that\_ equity capital may not be ~1thdrawn or cash d1stnbut1ons paid 1f the resulting net capital would exceed 10 to 1. t December 31, 2020, the Company had net capital of \$19,177, which exceeded the mi imum requirement of \$5,000 by \$14,177. The Company's ratio of aggregate indebtedness t net capital was 0.41 to 1. {8}------------------------------------------------ ## R VA CAPITAL MARKETS, LLC ### NOTES TO STAT MENT OF FINANCIAL CONDITION (continued) ### EAR ENDED DECEMBER 31, 2020 ### **Note 8** - **Subsequent events:** The Company has evaluated ubsequent events through the date that these financial statements were available to e issued and no further information is required to be disclosed. The worldwide outbreak of the coronavirus (COVI D-19) may have an adverse impact on the financial markets and the o erall economy. In the event such an adverse impact was to occur and last for a sustain d period, the operations and financial performance of the Company may be adversely a cted. At this point however, the severity of such an event is highly uncertain and cannot e predicted. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.