# CAPLINK SECURITIES, INC X-17A-5 (2022-03-18) — Broker-dealer annual report - Company: CAPLINK SECURITIES, INC - Form: X-17A-5 - Filed: 2022-03-18 - Period: 2021-12-31 - Accession: 0001280342-22-000002 - CIK: 1280342 - File #: 8-66379 - Type: Broker-dealer - Material weakness: No - Auditor: Michael Coglianese CPA, P.C. - Auditor location: Bloomingdale, IL - Contact: Scott Mibu - Phone: 310-952-0987 x101 - Email: ndenney@fincocontrols.com - Website: fincocontrols.com - Signed by: Scott Mibu (President) Original filing: https://www.sec.gov/Archives/edgar/data/1280342/000128034222000002/caplink2021auditpublic2.pdf --- {0}------------------------------------------------ | | UNITED STATES | | 0MB APPROVAL | | |---------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|-----------------|-------------------------------------------------------------------------------------------------------|--| | | SECURITIES AND EXOIANGE COMMISSION
Washington, D.C. 20549 | | 0MB Number: 3235-0123
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hours per response: 12 | | | | | | | | | | ANNUAL REPORTS | | SEC FILE NUMBER | | | FORM X-17A-5 | | | 8-66379 | | | | PART Ill | | | | | | FACING PAGE | | | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Excha~e Act of 1934 | | | | | | | | | __ | | | FILING FOR THE PERIOD BEGINNING | 01/01/2021
MM/00/YY | AND ENDING
- | 12/31/2021
--=c:;,.:::;;;;;;.;;;=
MM/DD/VY | | | | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | NAM E OF FIRM: _
_ C:::::a::.ip~L:.!:in:.::k:::S~e~c:::u:: ri~f :.::1e:;:. s:.;ln~c::·:.,_ | ____ | _ | ______________
_ | | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
(29 Broker-dealer | D Security-based swap dealer | | D Major security-based swap participant | | | D Check here if respondent is also an OTC derivatives dealer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 200 Pier Avenue, Suite 123 | (No. and Street) | | | | | | | | | | | Hermosa Beach | CA | | 90254 | | | {Oty) | (State) | | (Zip Code) | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | | | | Nicolette Denney | 760-815-1817
(Area Code - Telephone Number) | | (Email Address) | | | (Name) | | | ndenney@fincocontrols.com | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | Michael Coglianese CPA P.C. | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 125 E. Lake Street, Suite 303 | | | | | | {Address) | Bloomingdale
(Oty) | IL | 60108
(State)
(Zip Code) | | | | | | | | | 10/30/2009 | | | 3874 | | | (Date of Registration with PCAOB)(if aoolicable) | | | (PCAOB Registration Number, If applicable) | | | | FOR OFFICIAL USE ONLY | | | | 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 0 M B control number. {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | Scott M ibu
I, | swear (or affirm) that, to the best of my knowledge and belief, t he | |-----------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------| | financial report pertaining to the firm of | Ca plink Securities Inc
as of | | December 31 | 2__Qll_, is true and correct. I further swear (or affirm) that neither t
he company nor any | | partner, officer, director, or equivalent person, as t
as t hat of a customer. | rh
he case may be, has any proprietary interest in any account classified solely | Signature: ~ Title: President ### Please see attachment for notary #### Notary Public ### **This filing\*\* contains (check all applicable boxes):** - IZl (a) Statement of financial condition. - [X1 (b) Notes to consolidated statement of financial condition. - D (c) Statement of income (loss) or, if there is other comprehensive income in t he period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X). - □ (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. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capit al under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of cust omer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. - D (k) Computation tor 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. - 0 (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - 0 (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net wort h under 17 CFR 240.15c3-1, 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. - [Z] (a) 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-S or 17 CFR 240.18a-7, as applicable. - D (s) !exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - ~ (t) !ndependent public accountant's report based on an examinat ion of the statement of financial condition. - 0 (1.1) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 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 CFF: 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S 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 cpplicable. - D (y) ~eoort describing any material inadequacies found to exist or found to have exist ed since t he date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). □ (z) 'Jther ----------- ---- ---- - ----------------- - \*\*To re.quest confidential rreatment of certain portions of this filing, see 17 CFR 240.17a-5{e)(3) or 17 CFR 240.18a-7{d}{2), as appli..ab/e. {2}------------------------------------------------ | | California Jurat Certificate | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------| | 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 | | | | S.S. | | County of Los Ancally | | | | | | Subscribed and sworn to (or affirmed) before me on this __ day of J\ ( \ < \ | | | | Month | | SCOTT | and | | Name of Signer (1) | | | | | | Name of Signer (2) | , proved to me on the basis of | | | | | satisfactory evidence to be the person(s) who appeared before me. | | | | | | | HATTHEW ISAIAH PIRIL | | | Notary Public - California | | Standine of N. lary Public | Los Angeles County
Commission # 2389064 | | | My Comm. Expires Jan 1, 2026 | | Pilt
256. da | | | For of er required information (Notary Name. Commission No. etc.) | Seal | | - OPTIONAL INFORMATION | | | Allywough the infernation in this saction is not required by law, it could prevent fraudulent removal and realled ment of | | | this wat to an unauthorized document and may prove useful to persons relying on the attached document. | | | | | | | | | | Additional Information | | Description of Attached Document
The certificate is attached to a document titled/for the purpose of | Method of Affiant Identifieation | | | Proved to me on the basis of satisfactory evidence: | | | O for at (s) of identification O credible witness(es) | | | | | | Notarial event is detailed in notary journal on: | | | Page # __ Entry # | | | Notary contact: | | | | | | Other | | | Amant(s) Thumbprint(s) Describe: | | | | | | | | containing pages, and dated | | DIS COTU Neer y Learing Canter - All Rights Resorved - You can purchase control our web site al www.iheMaryStoce com- {3}------------------------------------------------ Caplink Securities Inc Financial Statements and Supplemental Schedules Required by the U.S. Securities and Exchange Commission Including Independent Auditor's Report Thereon For the Year-Ended December 31, 2021 {4}------------------------------------------------ # Contents | Independent Auditor's Opinion | | |----------------------------------|--| | Statement of Financial Condition | | | Notes to Financial Statements | | {5}------------------------------------------------ Caplink Securities Inc Independent Auditor' s Opinion For the Year-ended December 31, 2021 {6}------------------------------------------------ ![](_page_6_Picture_0.jpeg) Bloomingdale I Chicago ## **Report of Independent Registered Public Accounting Firm** To the Board of Directors and Shareholders of Caplink Securities Inc. ## **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Caplink Securities Inc. as of December 31 , 2021 , and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Caplink Securities Inc. 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 Caplink Securities lnc.'s management. Our responsibility is to express an opinion on Caplink Securities lnc.'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 Caplink Securities Inc. in accordance with the 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 statements. We believe that our audit provides a reasonable basis for our opinion. We have served as Caplink Securities lnc.'s auditor since 2019. *(h* I *dw,\_,t G,f'wu.J!.,* PA, p C . Bloomingdale, IL March 8, 2022 {7}------------------------------------------------ # **Caplink Securities Inc Statement of Financial Condition For the Vear-Ended December 31, 2021** | Cash | \$
49,678 | |--------------------------------------------------------|--------------| | Other Assets -
Prepaid | 4,337 | | Total assets | \$
54,015 | | Liabilities and Shareholders' Equity | | | Liabilities | | | Accounts payable and accrued expenses | \$
10,867 | | Long Term Loan | 27,200 | | Total liabilities | 38,067 | | Shareholders' equity | | | Common stock, .001 par value; 10,000 shares authorized | | | 2,000 shares outstanding | 2 | | Additional paid-in capital | 31,443 | | Accumulated deficit | (15,497) | | Total Shareholders' equity | \$
15,948 | | Total Liabilities and Shareholders' equity | \$
54,015 | The accompanying notes are an integral part of t hese financial statement s. {8}------------------------------------------------ ## **Caplink Securities Inc Notes to Financial Statements As of and for the Year-Ended December 31, 2021** ## **NOTE** I - **SIGNIFICANT ACCOUNTING POLICIES** **Organization** - Caplink Securities, Inc. (the "Company") was incorporated in the State of California on April 17, 2003 under the name Centara Capital Securities, Inc. Operations began July 2004. In August 2015, the Company changed their name to Ca plink Securities, Inc. and filed the change with the Secretary of the State of California. The Company is registered with the Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority (FINRA). **Basis of Presentation** - The Company conducts the following types of business as a securities broker-dealer, which comprises several classes of services, including: - Private Placements - Third party marketing of alternative investments **Revenue Recognition** - Third party marketing revenue is recognized in the form of quarterly fees that are earned as a percentage of the manager's fees assessed and earned on the assets in the various funds. Marketing fees are recognized in the month that the manager charges the quarterly fees on the assets in the funds. Due to the nature of the Company's business, the size of any one transaction may be significant to the Company's operations for the period. On October 29, 2013, the Company began conducting business under Rule 1Sc3-3(k)(2)(i). **Concentrations of Credit Risk** - The Company's cash is on deposit at one financial institution and the balance at times may exceed the federally insured limit. The Company believes it is not exposed to any significant credit risk to cash. **Estimates** - The preparation of financial statements 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 statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. # **NOTE 2- FAIR VALUE** Unless otherwise indicated, the fair values of all reported assets and liabilities that represent financial instruments (none of which are held for trading purposes) approximate the carrying values of such amounts. # **NOTE 3** - **INCOME TAXES** The Company has elected to be taxed under the provisions of subchapter S of the Internal Revenue Code and comparable State of California statutes wherein the Company' s taxable federal and state income is taxed directly to the shareholder. Addit ionally, the state of California imposes a 1.5% state franchise tax on the corporation's taxable income. The accounting principles generally accepted in the United States of America provide accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken by the Company in its Federal and State organization tax returns are more likely than not to be sustained upon examination. The Company is subject to examinations by U.S. Federal and State tax authorities from 2017 to the present, generally for three years after they are filed. {9}------------------------------------------------ ## **NOTE 4** - **EXEMPTION FROM THE SEC RULE 15C3-3** The Company conducts business activities involving rece1vmg transaction-based compensation for identifying potential merger and acquisition opportunities for clients and/or refening securities ti-ansactions to other broker-dealers. The Company does not accept customer funds or securities and will not have possession of any customer funds or securities in connection with our activities. Therefore, in reliance on footnote 74 to SEC Release 34-70073 and as discussed in Q&A 8 of the related FAQ issued by SEC staff, the fum does not claim an exemption from SEA Rule 15c3-3. The Company conducts under the "Non-Covered Film" provision. # **NOTE 5** - **LEASE FOOTNOTE** The Company leases office space on a month-to-month basis. Rent expense for the year was \$23,100. # **NOTE 6** - **SIPC SUPPLEMENTARY REPORT REQUIREMENT** The Company is not required to complete the SIPC Supplementary report under SEC Rule 17a-5(e)(4) for year ending December 31, 2021 because t he Company's SIPC Net Operating Revenues are under \$500,000. # **NOTE 7** - **Net Capital Requirement** The Company is a member of FINRA and is subject to the SEC Uniform Net Capital Rule (SEC 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. The Company's applicable minimum net capital is the greater of \$5,000 or 6-2/3% percent of total aggregated indebtedness. SEC 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the result ing net capital ratio would exceed 10 to 1. At December 31, 2021, the Company had net capital of \$11,611 which was \$6,611 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 93.59% at December 31, 2021. # **Note 8** - **Covid-19 and the CARES Act** In March 2020, Covid-19 virus spreading in the United States led to national a "Stay In Place" mandate. The US government offered small businesses monies under the CARES Act through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). All businesses awarded such loans are eligible to retain the monies and are not obligated to repay these loans if the funds are used in accordance to the rules and regulations prescribed by the CARES Act. These funds were provided in anticipation of financia l need and not related to actual financial circumstances of the receiving company. The Company received a loan in the amount of \$27,200 w ith an interest rate 3.75% per annum w ith a maturity date of April 23, 2051. # **NOTE 9** - **SUBSEQUENT EVENTS** While Caplink Securities membership agreement stated the Company was operating under SEC Rule 15c3- 3(k)(2)(i), Caplink Securities' operations in actuality relied on footnote 74 to SEC Release 34-70073 as discussed in Q&A 8 of the related FAQ issued by SEC staff. We have since requested to FINRA to change status to footnote 74. We have formally submitted the change to FINRA on February 25, 2022. Management has reviewed the results of operations for the period of time from its year end December 31, 2021 through February 25, 2022, the date the financial statements were available to be issued and has determined that no adjustments are necessary to t he amounts reported in the accompanying financial statements nor have any subsequent events occurred, the nature of which would require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.