# ALTERNATIVE ACCESS CAPITAL, LLC X-17A-5 (2021-03-23) — Broker-dealer annual report - Company: ALTERNATIVE ACCESS CAPITAL, LLC - Form: X-17A-5 - Filed: 2021-03-23 - Period: 2020-12-31 - Accession: 0001268841-21-000001 - 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 - Website: weisbergmole.com - Signed by: Douglas Cramer (Managing Prinicpal) Original filing: https://www.sec.gov/Archives/edgar/data/1268841/000126884121000001/AACPublic2020.pdf --- {0}------------------------------------------------ # *Alternative Access Capital, LLC* *Statement of Financial Condition* *December 31, 2020* {1}------------------------------------------------ #### **UNITED ST A TES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | 0MB APPROVAL | | | |---------------------------------|-------------------|--| | 0MB Number; | 3235-0123 | | | Expires: | October 31 , 2023 | | | Estimated average burden | | | | Hours per response
. . 12.00 | | | **8- 66226** SEC FILE NUMBER # ANNUAL AUDITED REPORT FORM X-17 A-5 PARTIII #### **FACING PAGE** #### **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING | ----------
01/01/2020
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12/31/2020
MMIDDNY | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|---------------|--------------------------------------|--|--|--| | A. REGISTRANT IDENTIFICATION | | | | | | | | NAME OF BROKER-DEALER: | | | OFFICIAL USE ONLY | | | | | Alternative Access Capital, LLC | | FIRM I.D. NO. | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | | 700 Larkspur Landing Circle, Suite 245 | | | | | | | | | (No. and Street) | | | | | | | Larkspur | CA | | 94939 | | | | | (City) | (State) | | (Zip Code) | | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT TN REGARD TO THIS REPORT | | | | | | | | Douglas Cramer | | | 415-448-5040 | | | | | | | | (Area Code - Telephone Number) | | | | | | B. ACCOUNT ANT IDENTIFCATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | | | Weisberg, Mole, Krantz & Goldfarb LLP | | | | | | | | (Name - if individual, state last, first, middle name) | | | | | | | | 185 Crossways Park Drive | Woodbury | NY | 11797 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | CHECK ONE:
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Certified Public Accountant
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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 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. I 7a-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 0MB control number.** {2}------------------------------------------------ #### **OATH OR AFFIRMATION** 7 | 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 | | | ------------------
of December 31
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, 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 account | | | classified solely as that of a customer, except as follows: | | | | | | | | | | | | | | | | | | | | | | ~--------- | | | | | | | | | | -> | | | | | | | | | | Managing Principal | | | | | Title | | | | | | | | Notary Public | | | | | | | see Attached | | | This report** contains (check all applicable boxes): | | Notary certificate | | [8] (a) | Facing page. | | | | [8] (b) | Statement of Financial Condition. | | | | D (c) | Statement of Income (Loss). | | | | D (d) | Statement of Changes in Financial Condition. | | | | D (e) | Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's Capital. | | | | □ (f) | Statement of Changes in Liabilities Subordinated to Ciaims of Creditors.
Computation of Net Capital. | | | | □ (g)
D (h) | Computation for Detennination of Reserve Requirements Pursuant to Rule 15c3-3 | | | | □ (i) | | | | | | lnfonnation Relating to the Possession or Control Requirements under Rule 15c3-3.
A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule 15c3-l and | | | | □ U) | the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3. | | | | D (k) | consolidation. | | A Reconciliation between the audited and unaudited statements of Financial Condition with respect to methods of | | [8] (1) | An Oath or Affinnation. | | | | | D (m) A copy of the SIPC Supplemental Report. | | | | D (n) | previous audit. | | A report describing any material inadequacies found to exist or found to have existed since the date of the | | | | | | *\*\*For conditions of confidential treatment of certain portions of this filing, see section 240. I 7a-5(e)(3).* {3}------------------------------------------------ # **ACKNOWLEDGMENT** | A notary public or other officer completing this
certificate verifies only the identity of 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
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paragraph is true and correct. | | | | WITNESS my hand and official seal.
ALEX FORBES CHIN
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~ | | | {4}------------------------------------------------ # Alternative Access Capital, LLC Notes to Financial Statements December 31, 2020 # PAGE Report oflndependent Registered Public Accounting Firm.......................... 1 Statement of Financial Condition .................................................................. 2 Notes to Financial Statement......................................................................... 3-7 {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, 2020, and the related notes ( collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Alternative Access Capital, LLC as of December 31, 2020 in conformity with accounting principles generally accepted in the United States of America. ## **Basis for Opinion** These financial statements are 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 statements, 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 statements. We believe that our audit provides a reasonable basis forouropinion. *(J)~, I'(~'.* /~ *d-~I L,lf* We have served as the Alternative Access Capital, LLC's auditor since 2004. Woodbury, New York February 15, 2021 > I 85 Crossways Park Drive, New York I 1797 • Phone: 516-933-3800 • Fax: 5 I 6-933-1060 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, 2020 #### ASSETS | Cash and cash equivalents | \$ | 142,520 | |-----------------------------------------------------------------------|----|----------------------| | Accounts receivable | | 82,189 | | Furniture and eql,lipment net of accumulated depreciation of \$48,311 | | 12,425 | | Operating lease right-of-use asset | | 92,946 | | Other assets | | 4,035 | | Total assets | \$ | 334,115
========= | | | | | | LIABILITIES AND MEMBER'S DEFICIT | | | | Accounts payable and accrued expenses | \$ | 27,183 | | Operating lease liability | | 92,946 | | Total liabilities | \$ | 120,129 | | Commitments and contingencies (note 5) | | | | Member's Equity | \$ | 213,986 | | Total liabilities and member's equity | \$ | 334,115 | *The accompanying notes are an integral part of this financial statement.* {7}------------------------------------------------ # Alternative Access Capital, LLC Notes to Financial Statement December 31 , 2020 #### 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, 2020, 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. {8}------------------------------------------------ # Alternative Access Capital, LLC Notes to Financial Statement December 31, 2020 # NOTE I -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 from 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, 2020, there were no contract liabilities. #### 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 success and retainer 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 , 2020. 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, 2020, 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 , 2020 # NOTE 1 - 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 15, 2021, 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 15c3-1), 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, shall not exceed 15 to 1. At December 31, 2020, the Company had net capital of \$115,336 which was \$110,336 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was .24 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. Tax years 2017 through 2020 are subject to audit by federal and state taxing authorities as of the date of this report. {10}------------------------------------------------ # NOTE 5 -RIGHT-OF-USE AND LIABILITY AND COMMITMENTS & CONTINGENCIES In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016- 02, Leases (Topic 842) and issued subsequent amendments to the initial guidance in September 2017 within 2017-13 (now collectively, Topic 842). Topic 842 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. Topic 842 was effective for the Company's fiscal year ending December 31, 2019. The Company has implemented the new standards and the accompanying financial statements reflect such right-of-use asset and liability based on the following operating lease terms. The Company rents office space pursuant to a lease term expiring January 31, 2024. The lease provides for a three-month abatement and monthly rent of \$2,724 with annual escalations thereafter. Based on these terms, the Company has recorded an Operating Rightof-Use Asset and a corresponding Operating Lease Liability of \$92,946 as of December 31, 2020 discounted using an interest rate of 5%. The Company also has satellite offices that it leases on a month to month basis. Lease expense for the year ended December 31, 2020 amounted to \$95,702. Future minimum undiscounted payments required under the lease as of December 31, 2020 are as follows: | 2021 | \$
34,857 | |------|------------------------------| | 2022 | 35,902 | | 2023 | 36,979 | | 2024 | 3,157 | | | \$
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110,895
===== | | | | #### 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 applied for a membership agreement change with FINRA on December 22, 2020 and will not claim exemption from the provisions of Rule 15c3-3 of the SEC, in reliance on footnote 74 to SEC Release 34-70073. The membership agreement change with FINRA became effective on February 2, 2021. {11}------------------------------------------------ # Alternative Access Capital, LLC Notes to Financial Statements December 31, 2020 ### NOTE 7 - EMPLOYEE RETIREMENT PLAN The Company established a cash balance defined benefit plan effective January 1, 2017. The plan covers all employees who have attained age 21 and have completed one year of service. The defined benefit plan provides for a normal retirement benefit based on the plans specified annual rates. Each year the Company is required to contribute an actuarially determined amount to the plan sufficient to fund the benefits provided under the plan. During 2020, the Company contributed \$270,000 to the defined benefit plan. At December 31, 2020 the plan covered two executives and, based on actuarial assumptions, provided for no contributions in 2020. The plan provides for cliff vesting of 100% after three years of service. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.