# ALTERNATIVE ACCESS CAPITAL, LLC X-17A-5 (2022-03-31) — Broker-dealer annual report - Company: ALTERNATIVE ACCESS CAPITAL, LLC - Form: X-17A-5 - Filed: 2022-03-31 - Period: 2021-12-31 - Accession: 0001268841-22-000001 - CIK: 1268841 - File #: 8-66226 - Type: Broker-dealer - Material weakness: No - Auditor: Weisberg, Mole, Krantz & Goldfarb, LLP - Auditor location: Woodbury, NY - Contact: Douglas Cramer - Phone: 914-260-9950 - Email: dcramer@alternative-access.com - Website: alternative-access.com - Signed by: Douglas Cramer (Managing Principal) Original filing: https://www.sec.gov/Archives/edgar/data/1268841/000126884122000001/AACPublic2021.pdf --- {0}------------------------------------------------ ## *Alternative Access Capital, LLC* *Statement of Financial Condition* *December 31, 2021* *Co,?fidential Pursuant to Reg. §240.17a-5(e)(3)* {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** ## **ANNUAL REPORTS FORM X-17A-S PART** Ill | SEC FILE NUMBER | |-----------------| | 8-66226 | **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | __
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A. REGISTRANT IDENTIFICATION
Alternative Access Capital, LLC
NAME OF FIRM :
TYPE OF REGISTRANT (check all applicable boxes):
D Major security-based swap participant
lxl Broker-dealer
□ Security-based swap dealer
D Check here if respondent is also an OTC derivatives dealer
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
700 Larkspur Landing Cir, Suite 245
(No. and Street) | ___
_ | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|--| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Larkspur
CA
94939 | | | | (Zip Code)
(City)
(State) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | Douglas Cramer
914-260-9950
dcramer@alternative-access.com | | | | (Name)
(Area Code - Telephone Number)
(Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Weisberg, Mole, Krantz & Goldfarb, LLP
(Name - if individual, state last, first, and middle name) | | | | | | | | NY
185 Crossways Park Drive
Woodbury
11797
(Address)
(City)
(State)
(Zip Code) | | | | | | | | 12/14/2004
2107
l" | | | | (P0\OB Registcatioo N,mbe,, if applicable)
of Registcat;oo with PCAOB )(if applicable)
FOR OFFICIAL USE ONLY | | | | * Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | I | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable. **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** | Douglas Cramer
I, | swear (or affirm) that, to the best of my knowledge and belief, the | | |--------------------------------------------|-------------------------------------------------------------------------------------------------------------|------------------------| | financial report pertaining to the firm of | Alternative Access Capital, LLC | , as of | | December 31 | 2___!g_L is true and correct. I further swear (or affirm) that neither the company nor any | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary in
st in any a | ount classified solely | | as that of a customer. | | | | SEE | | | **ATTACHED** Title: M . p . . l anagmg rmc1pa Notary Public #### **This filing\*\* contains (check all applicable boxes):** - IXl (a) Statement of financial condition. - IX] (b) Notes to consolidated statement of financial condition. - □ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation **S-X).** - D (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - □ (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - IX] (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - Ix] (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). D(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.* {3}------------------------------------------------ | | CALIFORNIA JU RAT | |----------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | document. | 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 | | | | | STATE OF CALIFORNIA | | | ____
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Place Notary Seal Above | | | ---------------------------------------------------OPTIONAL--------------------------------------------------- | | attachment of this form to an unintended document. | Though this section is optional, completing this information can deter alteration of the document or fraudulent | | Description of Attached Document I
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__________________________ | {4}------------------------------------------------ ## Alternative Access Capital, LLC Table of Contents December 31, 2021 # Report oflndependent Registered Public Accounting Firm.......................... 1 Statement of Financial Condition .. .. . ... . . . . . .. . . . . ... . . . . ... . . . . .. . . . . . . . . . ... .. . . . .. . ... . ... . .. . 2 Notes to Financial Statements .......................... ............................................. 3-6 PAGE {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, 2021, 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, 2021 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 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. *w~,tJ.116;~1-~UR* We have served as the Alternative Access Capital, LLC's auditor since 2004. Woodbury, New York March 28, 2022 > 185 Crossways Park Drive, New York 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, 2021 #### ASSETS | Cash and cash equivalents | \$ | 157,249 | |--------------------------------------------------------------------------------------------|----|------------------| | Accounts receivable
Furniture and equipment net of accumulated depreciation of \$51,072 | | 150,000
9,664 | | Operating lease right-of-use asset | | 64,285 | | Other assets | | 6,837 | | | | | | Total assets | \$ | 388,035 | | | | | | | | | | LIABILITIES AND MEMBER'S EQUITY | | | | Accounts payable and accrued expenses | \$ | 34,713 | | Operating lease liability | | 64,285 | | | | | | Total liabilities | \$ | 98,998 | | Commitments and contingencies (note 5) | | | | | | | | Member's Equity | \$ | 289,037 | | Total liabilities and member's equity | \$ | 388,035 | {7}------------------------------------------------ ## Alternative Access Capital, LLC Notes to Financial Statements December 31, 2021 ## 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 , 2021 , 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}------------------------------------------------ ## Alte111ative Access Capital, LLC Notes to Financial Statements December 31, 2021 ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES *(continued)* ## Revenue Recognitjon *(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, 2021, 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 , 2021. 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, 2021, the Company does not hold any financial instruments with offbalance-sheet risk. At ce11ain 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 Statements December 31, 2021 ## 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 March 28, 2022, 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, 2021, the Company had net capital of \$122,536 which was \$117,536 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was .28 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 2018 through 2021 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 is 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-U se Asset and a corresponding Operating Lease Liability of \$64,285 as of December 31, 2021 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, 2021 amounted to \$107,445. Future minimum undiscounted payments required under the lease as of December 31, 2021 are as follows: | 2022 | \$
35,902 | |------|--------------| | 2023 | 36,979 | | 2024 | 3,157 | | | \$
76,038 | | | ==------- | #### NOTE 6 - CUSTOMER PROTECTION RULE The Company applied for a membership agreement change with FINRA on December 22, 2020 and will not claim exemption from the provisions of Rule l 5c3-3 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. #### 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. At December 31, 2021 the plan covered two executives and, based on actuarial assumptions, provided for no contribution in 2021. The plan provides for cliff vesting of 100% after three years of service. The plan will be te1minated in 2022. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.