# XT CAPITAL PARTNERS, LLC X-17A-5 (2020-02-25) — Broker-dealer annual report
- Company: XT CAPITAL PARTNERS, LLC
- Form: X-17A-5
- Filed: 2020-02-25
- Period: 2019-12-31
- Accession: 0001146299-20-000001
- CIK: 1146299
- File #: 8-53683
- Material weakness: No
- Auditor: YSL & Associates LLC
- Auditor location: new york, NY
- Contact: andrew miller
- Phone: 9177105598
- Signed by: Julie Cochran (Managing Director)
Original filing: https://www.sec.gov/Archives/edgar/data/1146299/000114629920000001/xtcapitalpublicfs19.pdf
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| UNITED STATES |
|------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION |
| Washington, D.C. 20549 |
## ANNUAL AUDITED REPORT FORM X-17A-5 PART III
| | OMB APPROVAL | |
|-------------|--------------------------|-------------------------|
| OMB Number: | | 3235-0123 |
| | Expires: August 31, 2020 | |
| | Estimated average burden | |
| | | ours per response 12,00 |
| | | SEC FILE NUMBER |
| | 8 - | 53683 |
| | | |
#### FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder
| 01/01/2019 | AND ENDING | 12/31/2019 | | | | | |
|--------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|--|
| MM/DD/YYYYY | | MM/DD/YYYYY | | | | | |
| A. REGISTRANT IDENTIFICATION | | | | | | | |
| | | OFFICIAL USE ONLY | | | | | |
| XT Capital Partners LLC | | | | | | | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | |
| 311 Post Road East | | | | | | | |
| NY | | 11556 | | | | | |
| (State) | | (Zip Code) | | | | | |
| | | | | | | | |
| | | (212) 909-2680 | | | | | |
| | | (Area Code -- Telephone No.) | | | | | |
| | | | | | | | |
| | | | | | | | |
| YSL & Associates LLC | | | | | | | |
| | | | | | | | |
| New York | | 10004
(Zip Code) | | | | | |
| Accountant not resident in United States or any of its possessions | | | | | | | |
| | (City) | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
(Name - If individual, state last, first, middle nume )
NY
(State)
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 facts and circumstances relied on as the basis for the exemption. See section 240.17a-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 OMB control number.
SEC 1410 (06-02)
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#### OATH OR AFFIRMATION
| | Julie M. Cochran | , swear (or affirm) that, to the | | |
|------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------|--|--|
| best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm o | | | | |
| | XT Capital Pariners LLC' | OS SE | | |
| 2/31/2019 | are true and correct. I lurther swear (or affirm) that neither the company | | | |
nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows:
| Signalure |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| AUDIA TAYLOR
Notary Public
NOTARY PUBLIC, State of New York
No. 01TA5068172
Qualified in Kings County
Commission Expires 10/28/ |
| This report** contains (check all applicable boxes): |
| (a) Facing page.
(b) Statement of Financial Condition.
(c) Statement of Income (Loss)
(d) Statement of Changes in Financial Condition
(e) Statement of Changes in Stockholders Equity or Partners' or Sole Proprietors' Capital
(t) 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 or control Requirements Under Rule 15c3-3
(i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and thi
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 methods of con
solidation.
(1) An Oath or Affirmation |
| (m) A copy of the SIPC Supplemental Report
(1) A report describing any material inadequacies found to have existed since the date of the previous audi
(0) Exemption report |
\*\*For conditions of confidential treatment of vertain portions of this filing, see section 240.17a-5(e){3).
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### **XT CAPITAL PARTNERS, LLC**
FINANCIAL STATEMENT AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
DECEMBER 31, 2019
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### XT CAPITAL PARTNERS, LLC
### Table of Contents
December 31, 2019
| | Page(s) |
|---------------------------------------------------------|---------|
| Report of Independent Registered Public Accounting Firm | |
| Financial Statement: | |
| Statement of Financial Condition | 2 |
| Notes to Statement of Financial Condition | 3-7 |
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**11 Broadway, Suite 700, New York, NY 10004 Tel: (212) 232-0122 Fax: (646) 218-4682**
# **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Members of XT Capital Partners, LLC
## **Opinion on the Financial Statement**
We have audited the accompanying statement of financial condition of XT Capital Partners, LLC (the "Company") as of December 31, 2019, and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company as of December 31, 20 l 9 in conformity with accounting principles generally accepted in the United States of America.
#### **Basis for Opinion**
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 Board (United States) (PCAOB) and are required to be independent with respect to the Company 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 statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion.
We have served as XT Capital Partners, LLC's auditor since 2018.
New York, NY
February 25, 2020
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#### ASSETS
| Current Assets | |
|-----------------------------------|-----------------|
| Cash | \$
158,017 |
| Fees receivable | 1,048,479 |
| Total Current Assets | 1,206,496 |
| Equipment, net | 1,390 |
| Prepaid expenses and other assets | 17,888 |
| TOTAL ASSETS | \$
1,225,774 |
#### LIABILITIES AND MEMBERS' EQUITY
| Current Liabilities | |
|---------------------------------------|-----------------|
| Accounts payable and accrued expenses | \$
1,018,729 |
| Total Current Liabilities | 1,018,729 |
| Members' Equity | 207,045 |
| TOTAL LIABILITIES AND MEMBERS' EQUITY | \$
1,225,774 |
See accompanying notes to financial statement.
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# Note 1 - Nature of Operations
XT Capital Partners, LLC (the "Company") is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company markets and distributes specialized investment management strategies for institutional investors.
Effective December 30, 2010, the Company became a member of the Municipal Securities Rulemaking Board.
# Note 2 - Summary of Significant Accounting Policies
## *Cash and Concentration of Credit Risk*
The Company defines cash equivalents as short term, highly liquid investments with original maturities of less than ninety days from date of acquisition. The carrying amounts of such cash equivalents approximate fair value due to the short term nature of these investments.
As of December 31, 2019, the Company maintained its cash balance of \$158,017 with one financial institution which, at times, may exceed federally insured limits. The Company's cash balance includes a checking account and an interest bearing savings account. The Company has not experienced any loss in these accounts and believes it is not subject to any significant credit risk.
#### *Fees Receivable*
The Company carries its fees receivable at cost less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its fees receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions. No allowance for doubtful accounts was required as of December 31, 2019. Accounts receivable are written-off when deemed uncollectible after reasonable collection efforts
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## Note 2 - Summary of Significant Accounting Policies (continued)
### *Significant Judgements*
Revenue from contracts with customers includes fees from third party marketing revenue from raising capital on behalf of hedge funds, private equity, and other alternative funds .. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; 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.
#### *Equipment*
Equipment is stated at cost less accumulated depreciation. The Company provides for depreciation on the straight-line method as follows:
| Assets | Estimated
Useful Life |
|--------------------|--------------------------|
| Computer equipment | 3 Years |
| Furniture | 7 Years |
#### *Income Taxes*
No provision for federal and state income taxes has been recorded because the Company is a limited liability company. Accordingly, the individual members report their share of the Company's income or loss on their respective personal income tax returns.
At December 31, 2019, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances may require.
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### Note 2 - Summary of ignificant Accounting Policie (continued)
#### *Use of Estimates*
The preparation of financial statements in conformity with accounting standards generally accepted in the United States of America 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 statement. In certain instances, management was not able to make estimates since the information that was available prior to the issuance of the financial statements was not probable and reasonably estimable. Actual results could differ from those estimates.
#### *Leases*
In February 2016, the FASB issued ASU No. 2016-02, Leases ("ASU 2016-02"). This update requires all leases with a term greater than 12 months to be recognized on the balance sheet through a right of use asset and a lease liability and the disclosure of key information pertaining to leasing arrangements. This new guidance is effective for years beginning after December 15, 2018, with early adoption permitted. ASU 2016-02 did not have a material impact to the Company's financial statements and related disclosures since the Company does not have any leases with a term greater than 12 months.
#### Note 3 - Concentration of Fees Receivable
Fees receivable relating to two investment managers at December 31, 2019 accounted for 99% of the fees receivable.
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### Note 4 - Commitments
The Company leases office space in Connecticut under an operating lease which originally expired in September 2017 and was renewable for periods of six month at a time through February 2020. The lease requires the Company to pay utilities and other costs associated with the office space.
## Note 5 - Related Paity Transaction
Related parties transactions include the payments to the members of the Company and payments made to the Company's retirement plan on behalf of the members of the Company.
Guaranteed payments to the members that are intended as compensation for services rendered are accounted for as company expenses rather than as allocations of membership net income.
The Company maintains a Qualified Retirement Plan for its participants. Company contributions are made at the discretion of the members and are subject to limitations provided by the Internal Revenue Code.
# Note 6 - Net Capital Requirement
The Company, as a member of the FINRA, is subject to the SEC Uniform Net Capital Rule 15c3-1. This rule requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1, and that equity capital may not be withdrawn if the resulting net capital ratio would exceed I 0 to 1.
At December 31, 2019, the Company's net capital was approximately \$136,000 which was approximately \$68,000 in excess of its minimum requirement of \$68,000 under SEC Rule l 5c3-1.
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#### Note 7 - Other Matters
During the year, the Company engaged registered representatives to provide marketing support in its private placement activities. Fees to representatives are based on the amount of funds successfully placed.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.