# EQUUS FINANCIAL CONSULTING LLC X-17A-5 (2020-03-02) — Broker-dealer annual report - Company: EQUUS FINANCIAL CONSULTING LLC - Form: X-17A-5 - Filed: 2020-03-02 - Period: 2019-12-31 - Accession: 0001289009-20-000005 - CIK: 1289009 - File #: 8-66467 - Material weakness: No - Auditor: Berkower LLC - Auditor location: Iselin, NJ - Contact: Darryl Glatthorn - Phone: 203-222-7400 - Signed by: Darryl J. Glatthorn (Managing Partner) Original filing: https://www.sec.gov/Archives/edgar/data/1289009/000128900920000005/equuspublic2019.pdf --- {0}------------------------------------------------ **Equus Financial Consulting, LLC Statement of Financial Condition December 31, 2019** {1}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours per response .. . . . . . 12.00 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III | | SEC FILE NUMBER | |---------|-----------------| | | | | 8-52728 | | 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 | 01/01/19 | AND ENDING | 12/31/19 | |---------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|-------------------|--------------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: Equus Financial Consulting LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | OFFICIAL USE ONLY | | | | | | FIRM I.D. NO. | | | 78 Pine Street, Suite 101 | | | | | (No. and Street) | | | | New Canaan | CT | | 06840 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Darryl Glatthorn | | 203-222-7400 | | | | | | (Area Code - Telephone Number) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
Berkower LLC | (Name - if individual, state last, first, middle name) | | | | 517 Route One | lselin | NJ | 08830 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE:
Certified Public Accountant
Public Accountant
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 are what must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2) > Potential persons who are to respond to the collection of Potential persons will and will and required to respond unless the form displays a currently valid OMB control number. SEC 1410 (06-02) {2}------------------------------------------------ #### OATH OR AFFIRMATION #### Darryl J. Glatthorn I, we a more a more swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of Equus Financial Consulting LLC as a comments of the consideration, as a more and correct. I further swear (or affirm) that swear (or affirm) that December 31 of of a comments of neither the company nor any partner, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: | Managing Partner
Title | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | BLERINA BOBI
Notary Public
Notary Public
Connecticut
This report ** contains (check all applicable boxes):
My Commission Expires Sep 30, 2022
(a) Facing Page.
(b) Statement of Financial Condition.
(c) Statement of Income (Loss).
(d) Statement of Changes in Financial Condition.
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | (g) Computation of Net Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3.
(i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3.
(k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of
consolidation.
(1) An Oath or Affirmation.
(m) A copy of the SIPC Supplemental Report.
(n) A report describing any material inadequacies found to have existed since the date of the previous audit.
** For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). | {3}------------------------------------------------ # **Equus Financial Consulting, LLC Index to Statement of Financial Condition December 31, 2019** | | Page(s) | |------------------------------------------------------------|---------| | Report
of Independent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Managing Member of Equus Financial Consulting LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Equus Financial Consulting LLC (the "Company") as of December 31, 2019 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 the Company as of December 31, 2019 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 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 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. Berkower LLC Iselin, New Jersey February 28, 2020 {5}------------------------------------------------ #### **ASSETS** | Assets: | | |--------------------------------------------|-----------------| | Cash
and
cash
equivalents | \$
174,656 | | Accounts
receivable | 794,967 | | Prepaid
expenses and
other
assets | 42,163 | | Total
assets | \$
1,011,786 | #### **LIABILITIES AND MEMBER'S EQUITY** | Liabilities: | | | |---------------------------------------------------|----|-----------| | Commissions
payable | \$ | 614,689 | | Accounts
payable
and
accrued
expenses | | 19,980 | | Total
liabilities | | 634,669 | | Member's
equity | | 377,117 | | Total
liabilities
and
member's
equity | \$ | 1,011,786 | See accompanying notes to financial statement. {6}------------------------------------------------ # **1. Nature of Operations and Summary of Significant Accounting Policies** #### Nature of Operations Equus Financial Consulting, LLC (the "Company") is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company is a limited liability company formed in the State of Delaware. The Company's primary business focus is on private placements and life settlements. The Company provides services to a growing group of alternative assets managers to source qualified investors for their investment funds. In the life settlements market, the Company acts as a broker to arrange the sale of individual variable universal life insurance policies. #### Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. #### Use of Estimates The preparation of the 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 these estimates. #### Cash and Cash Equivalents Cash and cash equivalents are stated at market value. Cash equivalents include only securities having a maturity of three months or less at the time of purchase. The Company maintains its cash balances at one financial institution located in the United States. These balances are insured up to \$250,000 by the Federal Deposit Insurance Corporation. At times, cash balances may exceed the insured limits. The Company has not experienced any losses in such accounts. The Company held no cash equivalents at December 31, 2019. #### Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company may record an allowance for doubtful accounts, which is the Company's best estimate of the amount of probable credit losses on the existing accounts receivable. The allowance is determined based on the historical write-off experience and age of the accounts receivable balances. The allowance for doubtful accounts is reviewed on a monthly basis. Past due balances over 90 days and over a specified amount are reviewed individually each month for collectability and specific bad debt reserves are recorded as deemed necessary. Account balances are written off and removed from the allowance for doubtful accounts calculation when the Company determines that it is probable the accounts receivable will not be recovered. At December 31, 2019, no allowance for doubtful accounts was deemed necessary. {7}------------------------------------------------ # **Equus Financial Consulting, LLC Statement of Financial Condition As of December 31, 2019** ### Commissions Payable The Company records commissions payable to contractors based on a percentage of revenue. Commissions are paid when cash is received for amounts invoiced. No commission payable is recorded for accounts receivable balances that are considered uncollectible and for which a reserve is recorded. #### Income Taxes No provision for federal and state income taxes has been made for the Company since, as a single member limited liability company, the Company is not subject to income taxes. The Company's income or loss is reportable by its member on his individual tax return. The Company has determined that there are no uncertain tax positions which require adjustment or disclosure on this financial statement. The tax years that remain subject to examination by taxing authorities are 2016, 2017, 2018, 2019. # **2. Commitments and Contingencies** The Company rents office space in Connecticut, and during 2019 rented office space and a corporate apartment in Texas. The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the financial position or operations of the Company. The Company had no contingent liabilities and has not been named as a defendant in any lawsuit at December 31, 2019 or during the year then ended. # **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, 2019, the Company's net capital balance as defined by SEC Rule 15c3-1 was \$154,658 which exceeded the minimum requirement of \$42,311 by \$112,347. At December 31, 2019, the Company's aggregate indebtedness to net capital as defined by SEC Rule 15c3-1 was 4.10 to 1.0. The Company is exempt from Rule 15c3-3 of the Securities and Exchange Commission under paragraph (k)(2)(i). {8}------------------------------------------------ # **4. Liabilities Subordinated to the Claims of General Creditors** As of December 31, 2019, the Company had not entered into any subordinated loan agreement. ### **5. Subsequent Events** Events have been evaluated through the date that this financial statement was available to be issued, and no further information is required to be disclosed. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.