# FDX CAPITAL LLC X-17A-5 (2021-03-01) — Broker-dealer annual report - Company: FDX CAPITAL LLC - Form: X-17A-5 - Filed: 2021-03-01 - Period: 2020-12-31 - Accession: 0001166453-21-000001 - CIK: 1166453 - File #: 8-65170 - Material weakness: No - Auditor: Alvarez & Associates, Inc - Auditor location: Northridge, CA - Contact: Elizabeth Smith - Phone: 646 201-9167 - Signed by: Kevin R Greene (Chairman/CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1166453/000116645321000001/Public.pdf --- {0}------------------------------------------------ ## **FDX CAPITAL LLC (SEC I.D. No. 8-065170)** FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 ANO REPORT OF I NDEPENOENT REGISTERED PUBLIC ACCOUNTING FIRM **PUBLIC** {1}------------------------------------------------ #### UNITED STATES SECURITIES **AND EXCHANGE COMMISSION** Washington, D.C, 20549 **0MB APPROVAL** 0MB Number: 3235-0123 Expires: October 31, 2023 Estfmoted **average** burden hours per response .. ,.,. 12.00 # **ANNUAL AUDITED REPORT FORM X•17A-5 PARTIII** | SEC FILE NUMBER | |-----------------| | e-65170 | **FACING PAGE** **Information Required of B1·okers** and **Dealers Pursuant to Section** 17 of the **Securities Exchange Act** of **1934 and Rule 17a•5 Thereunder** | REPORT FOR THE PERIOD BEGINNING 01 /01 /20 | | AND ENDING 12/31 /20 | --------- | | |-----------------------------------------------------------------------------------------------------|------------------------------------------------------|----------------------|-------------------------------|--| | | MM/DD/YY | | -
MM/DDIYY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME oF BROKER-DEALER: FDX Capital LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
515 Madison Avenue, 24th Floor | | | FIRM l.D. NO. | | | | | | | | | New York | New York | | 10022 | | | (Clty) | (Stat~) | | (Zlp Cod~) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | | | | | (Arca Cod~ -T~lcphone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | | Alvarez & Associa1es, Inc. Certified Public Accountants | | | | | | | (Nam~ - !( Individual, stMt Ian, J)M, 111fddle »am~) | | | | | 9221 Corbin Ave. Suite 165 | Northridge | CA | 91324 | | | (Addrcs~) | (City) | (Stale) | (Zip Code) | | | CHECK ONE: | | | | | | Certified Public Accountant | | | | | | Public Accountant | | | | | | a
Accountant not resident in United States or any of its possessions. | | | | | | | FOR omCIAL USE ONLY | | | | | | | | | | | | | | | | *\*Claims for exemption from the requirement Ihat the annual repo1·t be covered* by *the opinion oj'an Independent public accountant must be supported by a stalement of/acts and circumstances relied an as the basis/or the exemption. See Section 240.* J *7a-5(e}(2)* SEC 1410 (11·05) Potentlal pereone who are to respond to the oollectlon of Information oontelned-ln this form are not required to respond unleee the form dl&playa a currently valid OMS control number. {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | r, Kevin A Greene | , swear (or affirm) that, to the best of | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | FOX Capita! LLC | -----'--------------------------------------
my knowledge and belief the accompanying financial statement and supporting schedules perlain.ing to the firm of
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' | | of December 31 | are true and correct. I further swear (or affirm) that | | classified solely as that of a customer, except as follows: | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | | | | | | | | Chairman | | | Title | | | | | This report *"' contains (check all applicable boxes):
El (a) Facing Page .
.El (b) Statement of Financial Condition.
of Comprehensive Income (as defined in §210.1-02 of Regulation S-X).
§ (d) Statement of Changes in Financial Condition.
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
§ (g) Computation of Net Capital.
(h) Computation for Determination of Resetve Requirements Pursuant to Rule 15c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule l 5c3~3.
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(m) A copy of the SIPC Supplemental Report. | [J (c) Statement of lncome (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement
( e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
D (i) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-l and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule I 5c3-3.
D (k) A Reconciliation between the audited alld unaudited Statements of Financial Condition with respect to methods of
(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 conjldenlial treatment of cerrain portions of this jl/ing, see section 240. {Z(f;J£e}(3).
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proved to me on the basis of satisfactory evidences to be | | | | {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To Those Charged with Governance and the Member of FDX Capital LLC: ## **Opinion** on **the Financial Statement** We have audited the accompanying statement of financial condition of FDX Capital LLC (the "Company") as of December 31, 2020, and the related notes (collectively referred to as the "financial statement"). Jn our opinion, the statement of financial condition presents fairly, in all material 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** 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 lJ .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 2020. Northridge, California rcbruary 26, 2021 ![](_page_3_Picture_11.jpeg) {4}------------------------------------------------ ### FOX CAPITAL LLC STATEMENT OF FINANCIAL CONDITION December 31, 2020 #### ASSETS | Cash | \$
365,280 | |-------------------------|---------------| | lntercompany receivable | 5,506 | | Other receivable | 414,978 | | Prepaid expenses | 26,016 | | Total Assets | \$
811,780 | #### LIABILITIES AND **MEMBER'S** EQUITY | Accounts payable and accrued expenses | \$
453,064 | |---------------------------------------|---------------| | lntercompany payable | 14,023 | | Total Liabilities | 467,087 | | | | | Member's equity | 344,693 | |---------------------------------------|---------------| | Total Liabilities and Member's Equity | \$
811,780 | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ ### 1. ORGANIZATION AND NATURE OF BUSINESS FDX CAPITAL LLC (the Company) was formed on October 10, 2001 in the State of New Jersey as a broker-dealer in securities transactions under the Securities Exchange Act of 1934. The Company is a member of the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company's income is derived from fees earned by raising money for entities and individuals for placement with money managers and investing by professional managers with whom the Company has agreements. The Company also receives fees from the individuals acting as registered representatives of the firm. ### 2. SIGNIFICANT ACCOUNTING POLICIES ### CASH AND CASH EQUIVALENTS The Company considers all highly liquid debt instruments purchased with a maturity of less than three months or less to be cash equivalents. The carrying amount reported in the balance sheet for cash and cash equivalents approximates its fair market value. ### ACCRUAL BASIS OF ACCOUNTING The Company's financial statements are prepared using the accrual method of accounting. The Company's year-end is December 31. #### SIGNIFICANT JUDGEMENTS Revenue from contracts with customers include commissions income and fees from investment banking, M&A and raising capital. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement 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 approach measurement of the company's process under the contract; and whether constraints on variable consideration should be applied due to uncertain future event. #### DISTRIBUTION FEES The Company enters into arrangements with managed accounts and other pooled investment vehicles (funds) to distribute shares to investors. The company may receive distribution fees paid up front by the fund or overtime or a combination thereof. The Company believes that its performance obligation is the sale of security to investors and as such th is is fulfilled as of trade date. Any fixed amounts are recognized on the trade date and variable amounts are recognized to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of the shares at future points in time as well as the length of time the investor remains in the fund, both which {6}------------------------------------------------ are highly suspectable to factors outside of the Company's influence, the Company does not believe that it can overcome this constraint until the market value of the fund and the investor activity are known, which are usually monthly or quarterly. Distribution fees recognized in the current period are primary related to the performance obligation that have been satisfied in prior periods. ### M&A AND DEBT CAPITAL RAISE The Company provides advisory services on mergers and acquisition and raising of debt capital. Revenue for advisory arrangements is general recognized at the point in time that performance under the arrangement is completed (closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligation are simultaneously provided by the Company and consumed by the customer. In some circumstance, significant judgement is needed to determine the timing and measurement of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognition of revenues are reflected as contract liabilities. ### LEASES The Company shares its office space with an affiliate under the terms of an expense sharing agreement, which is cancelable with reasonable notice. This agreement is not subject to FASB ASC 842, leases. The company records shared expenses monthly as billed. ### INCOME TAXES The Company is a limited liability Company taxed as a partnership and the accompanying financial statements do not include any provision for federal or state income taxes. The Company is responsible for a local unincorporated business tax on income which is calculated at the statutory rate. ### USE OF ESTIMATES The preparation of the Financial Statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of 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 the estimates. ### CONCENTRATION OF RISK The Company maintains its cash in bank accounts, which at times, may exceed federally insured limits. The Company has not experienced any losses in this account and believes it is not exposed to any significant credit risk on cash and cash equivalents. {7}------------------------------------------------ ### 3. NET CAPITAL The Company is a member of FINRA and subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital of \$5,000, and requires that the ratio of aggregate indebtedness to net capital, both as defined, not to exceed 15 to 1. At December 31, 2020 the Company had net capital of \$132,723, which was \$101,584 in excess of the FINRA minimum capital requirements of \$31,139 and the percentage of aggregate indebtedness to net capital was 352%. ## 4. RELATED PARTY TRANSACTIONS FDX Capital currently has an Expense Sharing Agreement and a Service Fee Agreement with James Alpha Advisors LLC, a related entity. FDX Capital pays James Alpha Advisors for certain occupancy, operational, travel, salary and medical expenses. James Alpha Advisors LLC reimburses FDX Capital for all Mutual Fund sales related expenses, which include salaries, medical insurance and employee travel expense reimbursements. James Alpha Advisors LLC also pays FOX Capital Mutual Fund distribution fees. FDX Capital also currently has an Expense Sharing Agreement and a Service Fee Agreement with James Alpha Management LLC, a related entity. FDX Capital pays James Alpha Management for certain occupancy and operational expenses. James Alpha Management LLC reimburses FOX Capital for all Hedge Fund sales related expenses, which include salaries, medical insurance and employee travel related expenses. It is possible that the terms of the related parties are not the same as those that would result for transactions among wholly unrelated parties. ### 5. CONCENTRATION AND CREDIT RISK One company accounted for 31% and \$130,049 of other receivables. Management has evaluated the collectability of the receivable and has determined that no allowance for doubtful account is necessary. ## 6. SUBSEQUENT EVENTS The Company has evaluated events subsequent to the statement of financial condition date for items requiring recording or disclosure in the financial statements. The evaluation was performed through the date the financial statements were available to be issued. Based on this review, the Company has determined that there were no events that took place that would have a material impact on its financial statements. {8}------------------------------------------------ ### 7. COMMITMENTS, CONTINGENCIES, AND GUARANTEES The Company has no commitments, no contingencies, no guarantees, and has not been named as a defendant in any lawsuit as of December 31, 2020, or during the year then ended. The worldwide outbreak of coronavirus (COVID-19) may lead to adverse impact on the financial markets and the overall economy. In the event such an impact was to occur and last for a sustained period, the operations and financial performance of the Company may be adversely affected. At this point, however, the severity of such an event is highly uncertain and cannot be predicted. ### 8. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (the "FASB") has established the Accounting Standards Codification ("Codification" or "ASC) as the authoritative source of generally accepted accounting principles ("GAAP") recognized by the FASB. The principles embodied in the Codification are to be applied by nongovernmental entities in the preparation of financial statements in accordance with GAAP in the United States. New accounting pronouncements are incorporated into the ASC through the issuance of Accounting Standards Updates {"ASU's"). For the year ending December 31, 2020, various ASU's issue by the FASB were either newly issued or had effective implementation dates that would require their provisions to be reflected in the financial statements tor the year then ended. The Company has either evaluated or is currently evaluating the implications, if any, of each of these pronouncements and the possible impact they may have on the Company's financial statements. In most cases, management has determined that the pronouncement has either limited or no application to **the** Company and, in all cases, implementation would not have a material impact on the financial statements taken as a whole. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.