# ALTERNATIVE ACCESS CAPITAL, LLC X-17A-5 (2019-03-01) — Broker-dealer annual report - Company: ALTERNATIVE ACCESS CAPITAL, LLC - Form: X-17A-5 - Filed: 2019-03-01 - Period: 2018-12-31 - Accession: 0001268841-19-000001 - CIK: 1268841 - File #: 8-66226 - Material weakness: No - Auditor: Weisberg, Mole, Krantz & Goldfarb, LLP - Auditor location: Woodbury, NY - Contact: Douglas Cramer - Phone: 415-448-5040 - Signed by: Douglas Cramer (Managing Principal) Original filing: https://www.sec.gov/Archives/edgar/data/1268841/000126884119000001/AAC2018PublicAudit.pdf --- {0}------------------------------------------------ # *Alternative Access Capital, LLC* *Statement of Financial Condition* *December 31, 2018* {1}------------------------------------------------ #### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | | OMB APPROVAL | | |-------------|--------------------------|-----------| | OMB Number: | | 3235-0123 | | Expires: | August 31, 2020 | | | | Est mated average burden | | | | Hours per response | 12.00 | | | | ANNUAL AUDITED REPORT | | |--|--|-----------------------|--| | | | | | ## FORM X-17A-5 ## PART III SEC FILE NUMBER 8-66226 ### 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
A. REGISTRANT IDENTIFICATION
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | MM/DD/Y Y
OFFICIA _ USE ONLY | |---------------------------------------------------------------------------------------------------------------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | FIRM I.D. NO. | | | | | | | | | | (No, and Street) | | | | | | 01939 | | | | (Zip Code) | | | | | | | | 415-448-5040 | | | | (Arca Code - Telephone Number) | | | | | | | | | | | | | | | | | | | NY | 11797 | | | (State) | (Zip Code) | | | | | | | | | | | | | | | | | | | | | | | | | | (State)
(City) | Woodbury | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
B. ACCOUNTANT IDENTIFCATION
INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
Accountant not resident in United States or any of its possessions.
FOR OFFICIAL USE ONLY | \*Claims for exemption from the requirement that the annual report be covered by the epinion 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){}. > 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. {2}------------------------------------------------ # OATH **eR** AFFIRMATION | I, | Douglas Cramer | | | , swear ( or affirm) that, to the best of | |---------|-----------------------------------------------------------------------------------------------|------|-------------|----------------------------------------------------------------------------------------------------------------------------| | | | | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | | Alternative Access Capital, LLC | | | . as | | - | --------
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of December 31
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18 | , are true and correct. I further swear (or affirm) that | | | | | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any acc•unt | | | classified solely as that of a customer, except as follows: | | | | | | | | | | | | | | | | | | | | | Signature | | | See Attached Notary | | | | | | Jurat Certificate | | | l\fanaging Principal
Title | | | | | | | | | Notary Public | | | | | | | | | | | 0 (a) | This rep•rtH contains (check all applicable boxes):
Facing page. | | | | | ~ (b) | Statement of Financial Condition. | | | | | D (c) | Statemen: oflnco ne (Liss). | | | | | D (a) | Statement of Changes in Financial Condition. | | | | | D (e) | Statement of Changes in Steckholder:,' Equity or Partners' or Sole Proprietor's Capital. | | | | | D (f) | Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | | | | D (g) | Computation ofNet Capital. | | | | | D (h) | Computation fer Determination of Reserve Requirements Pursuant to Rule l 5c3-3. | | | | | D (i) | Information Relating to the Possession or Control Jltequirements under Rule I5c3-3. | | | | | D (j) | the Comput11tion for Determination ofthe Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | A Reconciliation, including appropriate explanation, of the Computation of Net Capital Lnder Rule I 5c3-I and | | D (k) | consolidation. | | | A Rec•nciliation between the amliitea and unaudited statements of Financial Condition with respect to methods of | | [g] (l) | An Oath or Affirmati,n. | | | | | | 0 {rn) A copy of the SlPC Supplemental Report. | | | | | D (n) | previous audit. | | | A report describing any material inadequacies found to exist or found to have exi5ted since the tate of the | *\*\*For con«itions of con.fidemi•l treatment ofcert•in porti•ns ofthisjiling, see s~clion 240.* l7•-5fe)(J). {3}------------------------------------------------ # CALIFORNIA JURAT A notary public or other officer completing this certificate verifies only the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF Marin Subscribed and sworn to (or affirmed) before me on this \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Douglas Arthur Cramer Name of Signers proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me. KAREN VORTHHAGEL Notary Public - California 101 thou aren Signature: \_ Marin County Commission # 2265980 Signature of Notary Public Comm. Expires Nov 5, 2022 Seal Place Notary Seal Above ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Though this section is optional, completing this information of the document or fraudulent attachment of this form to an unintended document. Description of Attached Documents Title or Type of Document: Document Date: 311119 Number of Pages: Signer(s) Other Than Named Above: {4}------------------------------------------------ # **Alternative Access Capital, LLC** Table of Contents December 31 , 2018 | | PAGE | |--------------------------------------------------------|------| | Report oflndependent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | 2 | | Notes to Financial Statement
| 3-6 | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) # **Weisberg, Mole, Krantz & Goldfarb, LLP** *Certified Public Accountants* # **Report of Independent Registered Public Accounting Firm** To the Managing Member of Alternative Access Capital, LLC ## **Opinion of the Financial Statements** We have audited the accompanying statement of financial condition of Alternative Access Capital, LLC (a Delaware corporation) as of December 31, 2018, and the related notes ( collectively referred to as the "financial statements"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Alternative Access Capital, LLC as of December 31, 2018 in conformity with accounting principles generally accepted in the United States of America. ## **Basis for Opinion** This financial statement is the responsibility of Alternative Access Capital, LLC's management. Our responsibility is to express an opinion on Alternative Access Capital, 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 Alternative Access Capital, LLC 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. 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 statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Alternative Access Capital, LLC's auditor since 2004. Woodbury, New York February 25, 2019 185CrosswaysParkDrive, NewYork 11797 • Phone: 516-933-3800 • Fax: 516-933-1060 700 Kinderkamack Rd, New Jersey 07649 • Phone: 201-655-6249 • Fax: 201-655-6098 www.weisbergmole.com {6}------------------------------------------------ # ALTERNATIVE ACCESS CAPITAL, LLC # STATEMENT OF FINANCIAL CONDITION ## December 31, 2018 ## ASSETS | Cash and cash equivalents | \$
138,124 | |---------------------------------------------------------------------|----------------------------| | Accounts receivable | 198,704 | | Furniture and equipment net of accumulated depreciation of \$42,424 | 18,313 | | Other assets | 5,209 | | Total assets | \$
360,350
========= | | | | ## LIABILITIES AND MEMBER'S DEFICIT | Accounts payable and accrued expenses
Accrued pension payable (note 7) | \$
88,607
49,000 | |---------------------------------------------------------------------------|------------------------| | Total liabilities | \$
137 607 | | Commitments and contingencies (note 4) | | | Member's Deficit | \$
222,743 | | Total liabilities and member's deficit | \$
360,350 | {7}------------------------------------------------ # Alternative Access Capital, LLC Notes to Financial Statement December 31, 2018 # NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies followed by the Company in the preparation of the accompanying financial statements are as follows: # Nature of Operations Alternative Access Capital, LLC ("the Company"), formed in July 2003, operates as 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 high net worth individuals and institutional investors. # Accounts Receivable Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts, as needed. At December 31, 2018, the Company considers all accounts receivable fully collectible. Accordingly, there is no allowance for doubtful accounts. ## Furniture and Equipment Furniture and equipment is stated at cost less accumulated depreciation. The Company provides for depreciation using the straight line method over an estimated useful life of three to seven years. # Revenue Recognition Effective January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The new revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, ( 4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. This change was applied using the modified retrospective method and there was no impact on our previously presented results. The adoption of the new revenue standard resulted in no change to beginning member's equity. {8}------------------------------------------------ # Alternative Access Capital, LLC Notes to Financial Statement December 31 , 2018 # NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES *(continued)* # Revenue Recognition *(continued)* The Company provides investment banking and advisory services. Revenue for investment banking success fees is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction). For certain contracts, the Company must evaluate the likelihood of significant reversal of revenue due to matters outside company control and only recognize revenue up to the amount that a significant revenue reversal is not probable. Revenue for financial advisory retainer fees is generally recognized over time in which the performance obligations are simultaneously provided by the Company and consumed by the customer. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. At December 31, 2018, there were no contract liabilities. Disaggregation can be found on statement of operations for the year ended December 31, 2018. # Income Taxes The Company's member has elected to treat the Company as an "S" corporation for federal and state income tax purposes. As such, the member is liable for the federal and state taxes on profits. # Use of Estimates The preparation of 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 and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amount of income and expenses during the reported period. Actual results could differ from those estimates. # Concentrations and Credit Risk The Company receives its commission and fee income from customer transactions in accordance with the provisions specified in the contractual arrangements. Such provisions provide for timely payments of this income to the Company and, accordingly, the Company has determined that an allowance for uncollectible accounts is not required at December 31, 2018. These agreements are in effect until terminated by either party with thirty to ninety days prior notice. Any termination or amendment of these agreements could have a significant impact on the Company's operations. ## Off-Balance-Sheet Risk At December 31, 2018, the Company does not hold any financial instruments with offbalance-sheet risk. At certain times throughout the year, the Company may maintain bank account balances in excess of federally insured limits. {9}------------------------------------------------ # Alternative Access Capital, LLC Notes to Financial Statement December 31, 2018 # NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES *(continued)* # Cash and Cash Equivalents For purposes of the statement of cash flows, cash and cash equivalents includes funds in checking accounts. # Subsequent Events The Company has evaluated events and transactions that occurred through February 25, 2019, which is the date the financial statements were available for issue, for possible disclosure and recognition in the financial statements. # NOTE 2 - NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-l), 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, shall not exceed 15 to 1. At December 31, 2018, the Company had net capital of\$ 103,518 which was \$97,611 in excess of its required net capital. The Company's aggregate indebtedness to net capital ratio was .86 to 1. ## NOTE 3 - REGULATION The Company is registered as a broker-dealer with the SEC. The securities industry in the United States is subject to extensive regulation under both federal and state laws. The SEC is the federal agency responsible for the administration of the federal securities laws. Much of the regulation of broker-dealers has been delegated to self-regulatory organizations, such as the FINRA, which had been designated by the SEC as the Company's primary regulator. These self-regulatory organizations adopt rules, subject to approval by the SEC, that govern the industry and conduct periodic examinations of the Company's operations. The primary purpose of these requirements is to enhance the protection of customer assets. These laws and regulatory requirements subject the Company to standards of solvency with respect to capital requirements, financial reporting requirements, record keeping and business practices. ## NOTE 4 - INCOME TAXES As previously discussed, the Company is a limited liability company and has elected to be treated as an "S" Corp for federal and state tax purposes. Accordingly, the taxable income of the Company is taxable to its member. However, California imposes a franchise tax on the income of the Company. The financial statements include a provision for this tax. {10}------------------------------------------------ # Alternative Access Capital, LLC Notes to Financial Statement December 31, 2018 # NOTE 5 - COMMITMENTS AND CONTIGENCIES On August 15, 2013 the Company entered into a 38 month lease for office space located in Larkspur, California. The lease was extended for an additional 24 month period through October 31, 2018 and extended again for an additional 63 month period. The new terms of the lease provide for monthly rent of \$2,724 for the first twelve months and annual escalations thereafter. The Company also has satellite offices that it leases on a month to month basis. Rent expense for the year ended December 31, 2018 amounted to \$96,031. Future minimum payments required under the lease as of December 31, 2018 is as follows: | 2019 | \$
32,856 | |------------|--------------------------| | 2020 | 33,841 | | 2021 | 34,857 | | 2022 | 35,902 | | 2023 | 36,979 | | Thereafter | 3 157 | | | \$
177,592
======a | | | | # NOTE 6 - CUSTOMER PROTECTION RULE The Company had no items reportable as customers' fully paid securities: (1) not in the Company's possession or control as of the audit date (for which instructions to reduce to possession or control had been issued as of the audit date) but for which the required action was not taken by the Company within the time frames specified under Rule 15c3-3 or (2) for which instructions to reduce to possession or control has not been issued as of the audit date, excluding items arising from "temporary lags which result from normal business operations" as permitted under Rule 15c3-3. The Company is exempt from SEC Rule 15c3-3 pursuant to the exemptive provisions under sub-paragraph (k)(2)(i). # NOTE 7 - EMPLOYEE RETIREMENT PLAN The Company established a pension plan covering its executives and employees. The defined benefit plan provides for a normal retirement benefit based on the plans specified annual rates. At December 31, 2018 the plan covered two executives and, based on actuarial assumptions, provided for a total contribution of \$593,000. The plan provides for cliff vesting of 100% after three years of service. ## NOTE 8 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued a new accounting pronouncement regarding lease accounting for reporting periods beginning after December 15, 2019. A leasee will be required to recognize on the balance sheet, the assets and liabilities for lease terms of more than 12 months. Management is currently evaluating the effect this pronouncement will have on the financial statements and related disclosures. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.