# PORTICO CAPITAL SECURITIES LLC X-17A-5 (2021-04-01) — Broker-dealer annual report - Company: PORTICO CAPITAL SECURITIES LLC - Form: X-17A-5 - Filed: 2021-04-01 - Period: 2020-12-31 - Accession: 0001221237-21-000001 - CIK: 1221237 - File #: 8-65826 - Material weakness: No - Auditor: RSM US LLP - Auditor location: New York, NY - Contact: Ken George - Phone: 603-380-5435 - Signed by: Richard Northrop (Managing Partner) Original filing: https://www.sec.gov/Archives/edgar/data/1221237/000122123721000001/dec20_portico_audit_public3.pdf --- {0}------------------------------------------------ UNITED STA TES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20S49 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average bwden hours DCr. • • , 12.00 > SEC FILE NUMBER ~65826 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III ### FACING PAGE Information Reqllind of Broken ud DNlen Pvnwmt to Section 17 of the Securitiea Eseb qe Ad of 1934 and R•le **11a-S** Tbereunder | REPORT FOR lHE PERIOD BEGINNING ---~0u.lul0~ll2~02:0"--- | | AND ENDING | ___
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- | . A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER -
DEALER: | Portico Capital Securities LLC | | | | | | | | OFFICIAL USE ONLY | | | | | | FIRMID.NO. | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | ___________________
.:.3S~Muoo~=S~tree=t.~4"'-.:Fl::::oo=r__ | | ___ ._. -· | | | | (No. and Street) | | | | | | Greenwich, CT 06830
(City) | | | | | | (State) | | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | | KenQeom | | | | | | | | | e
(Area Code - | | | | B. ACCOUNTANT IDENTIFICATION | | | | | -------------------··· | · | | ----------------------- | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report• | | | | | | RSMUSLLP | | | | | | (Name - | if individual. lbltc last, fll'llt, middle name) | | | | | | | | | | | 4 Thng Sgyan;. 151 W 42nd Street, 1~ Floor. New York. NY 10036 | | | | | | (City)
(Address) | | (State) | (Zip Code) | | | | | | | | | [!] Certified Public Accountant | | | | | | D
Public Accountant | | | | | | D A~tant
not resident in UnJted States or any of its posseuions. | | | | | | CHECKONE: | FOR OFFICIAL USE ONLY | | | | *-Clolnufo,* ,,,,,,,,,.,,, **fi'-** *dw* **l'f#lll/lw-111** *tlt/lJ dw* **tlllllllOI r,po,t Z- cownd** *by tlw* **apllllOn** *o/* **1M** */JldttpeflMffl* ptlbllc *--.t* \_., **h** *~by"~ o/foe#..J~ rwlW* °" *t11* **ti.** *bt:u~/r,rdw* ......,, .... **Sn a«tfoll** *240.17t,-S(w){2).* SEC 1410 (06-02) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** 1, Richard Northrop, swear (or affinn) that, to the best of my knowledge and belief the accompanying financial statements and supporting schedules pertaining to the finn of Portico Capital Securities LLC as of December 31 , 2020, are true and correct. I further swear (or aflinn) that neither the Company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of o customer, except as follows: None Managing Partn r **This report contains (check all applicable boxes):** Kath leen O' Sullivan No t ary Public-Connecticu t My Commission Expires August 31 . 2022 - (x) (a) Facing page. - (x) (b) Statement of Financial Condition. - ( ) (c) Statement of Income (Loss). - ( ) (d) Statement of Cash Flows. - ( ) (c) Statement of Changes in Stockholders' Equity. - ( ) (f) Statement of Changes in Subordinated Liabilities (not applicable) ( ) (g) Computation of Net Capital Pursuant to Ruic I 5c3-I under the Securities Exchange Act of 1934. - ( ) (h) Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule I 5c3-3 under the Securilies Exchangt: Act of 1934. (not applicable) - ( ) (i) Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934 (not applicable). - ( ) U) A Reconciliation, including Appropriate Explanations, of the Computation of Net Capital Under Rule I 5c3-I and the Computation for Determination of the Reserve Requirements Under Rule I 5c3-3 - ( ) (k) A Reconciliation Between the Audited and Unaudited Consolidated Statements of Financial Condition With Respect to Methods of Consolidation (not applicable). - (x) (I) An Oath or Affirmation. - ( ) (m) A Copy of the SIPC Supplemental Report. - ( ) (n) Report on management's assertion letter regarding I 5c3-3 Exemption Report - ( ) (o) Management's assertion letter regarding 15c3-3 Exemption Report {2}------------------------------------------------ Portico Capital Securities LLC Financial Statement December 31, 2020 {3}------------------------------------------------ # **Portico Capital Securities LLC Index to Financial Statement December 31, 2020** | | Page(s) | |---------------------------------------------------------|---------| | Report of Independent Registered Public Accounting Firm | 1 | | Financial Statement: | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) RSM USLLP #### **Report of Independent Registered Public Accounting Firm** Member Portico Capital Securities LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Portico Capital Securities LLC (the Company) as of December 31 , 2020, and the related notes (collectively, the financial statement). In our opinion, the financial statement 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 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. 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 the Company's auditor since 2018. New York, New York April 1, 2021 THf POWfR OF BEING UNDERSTOOD AU01T TAX CONSIJLTl"JG {5}------------------------------------------------ # **Portico Capital Securities** LLC **Statement of Financial Condition As of December 31, 2020** | Assets
Cash and cash equivalents
Accounts receivable
Due from parent company
Prepaid expense | \$
1,916,255
8,275
1,552,535
12,577 | |----------------------------------------------------------------------------------------------------------|-------------------------------------------------| | Total Assets | \$
3,489,642 | | | | | Liabilities and Member's Equity | | | Liabilities | | | Accounts payable and accrued expenses | \$ 204,084 | | Total Liabilities | 204,084 | | Member's Equity | 3,285,558 | | Total Liabilities and Member's Equity | \$ 3,489,642 | See accompanying notes to financial statement. {6}------------------------------------------------ # **1. Nature of Operations and Summary of Significant Accounting Policies** # Nature of Operations Portico Capital Securities LLC, (the "Company") a limited liability company, was formed in the State of Delaware on January 24, 2003 and will terminate on December 31, 2028. The Company is registered as a broker/dealer with the Securities and Exchange Commission ("SEC") and is also a member of the Financial Industry Regulatory Authority ("FINRA"). The Company's principal business activities include providing consulting advice in: (i) corporate mergers and acquisitions, and (ii) corporate capital-raising. # Basis of Presentation The accompanying financial statement has been prepared in conformity with accounting principles generally accepted in the United States of America. # Use of Estimates The preparation of the financial statement in conformity with accounting principles 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. Actual results could differ from these estimates. # Cash Equivalents The Company has defined cash equivalents as highly liquid investments, with original maturities of three months or less. Cash equivalents consist of short-term money market accounts in the amount of \$118,385 as of December 31, 2020. ### Accounts Receivable Accounts receivable are carried at original invoiced amounts less an allowance for doubtful accounts. Management determines the allowance for doubtful accounts based upon historical experience and periodic evaluations of specific customer accounts. Accounts receivable are written off when deemed uncollectible. There were \$8,275 in accounts receivable as of December 31, 2020. Recoveries of amounts previously written off are recorded as income when received. There was no allowance necessary as of December 31, 2020. {7}------------------------------------------------ # **Nature of Operations and Summary of Significant Accounting Policies (continued)** # Accounts Receivable (continued) In June 2016, the FASS issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which introduced an expected credit loss model for the impairment of financial assets measured at amortized cost. The model replaces the probable, incurred loss model for those assets and broadens the information an entity must consider in developing its expected credit loss estimates for assets measured at amortized cost. The Company adopted ASU No. 2016-13 on January 1, 2020 using the modified retrospective approach with no material impact to its financial position, results of operations or cash flows. # Concentration of Credit Risk The Company maintains its cash balances in accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes there is little or no exposure to any significant credit risk. # Income Taxes As a limited liability company, the Company's taxable income or loss is allocated to the member for federal tax purposes. Therefore, no provision or liability for federal income taxes has been included in the financial statement. Management has evaluated the Company's tax positions and concluded that the Company has taken no material uncertain income tax positions that require adjustment to or disclosures in the financial statements. ### New Accounting Pronouncement ASU 2019-12- Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In December 2019, the FASS issued ASU 2019-12, "Simplifying the Accounting for Income Taxes (Topic 740)". The amendments in this update are intended to simplify the accounting for income taxes be removing certain exceptions to accounting principles generally accepted in the United States of America. The amendments also improve consistent application of and simplifying accounting principles generally accepted in the United States of America by modifying and/or revising the accounting for certain income tax transactions and by clarifying certain existing codification. The amendments in the update are effective for the Company for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. The Company is currently assessing the impact of adoption of this guidance. {8}------------------------------------------------ # **2. Related Party Transactions** Portico Holdings, LLC ("PH") is the single member of the Company. In May 2003, the Company entered into an Administrative Services Agreement (the "Agreement") with PH. Under the terms of the Agreement, PH provides services and facilities to the Company and the Company compensates PH for providing such services and facilities. PH processes the payment of expenses, which includes rent and utilities, salaries, telecommunications, professional fees and administrative assistance. PH charged the Company \$10,016,643 for such expenses for the year ended December 31, 2020. The Company reimbursed \$8,469,632 to PH for these expenses and PH treated the remaining \$1,547,011 as a capital contribution to the Company. PH owes the Company \$1,552,535 at December 31, 2020 for monies advanced to PH by the Company. # **3. Net Capital and Aggregate Indebtedness Requirement** The Company is subject to Part 240 Rule 15c3-1 of the Securities Exchange Act of 1934 (SEC Rule 15c3-1). SEC Rule 15c3-1 requires the Company to maintain a minimum net capital balance and a maximum ratio of aggregate indebtedness to net capital not to exceed 15 to 1. At December 31, 2020, the Company's net capital balance as defined by SEC Rule 15c3-1 was \$1,709,803, which exceeded the minimum requirement of \$13,606. At December 31, 2020, the Company's aggregate indebtedness to net capital as defined by SEC Rule 15c3-1 was .12 to 1. # **4. Rule 15c3-3 Exemption** The Company relies on Footnote 74 of the 2013 SEC Release 34-70073 in that the Company carries no margin accounts; does not hold funds or securities for, or owe money or securities to customers. ### **5. Subsequent Events** The Company has performed an evaluation of events that have occurred subsequent to December 31, 2020 and through April 1, 2021, which is the date the financial statements were issued. There have been no material subsequent events that occurred during such period that would require disclosure in this report or would be required to be recognized in the financial statements as of December 31, 2020. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.