# EQUUS FINANCIAL CONSULTING LLC X-17A-5 (2021-02-23) — Broker-dealer annual report - Company: EQUUS FINANCIAL CONSULTING LLC - Form: X-17A-5 - Filed: 2021-02-23 - Period: 2020-12-31 - Accession: 0001289009-21-000001 - CIK: 1289009 - File #: 8-66467 - Material weakness: No - Auditor: Alperin, Nebbia & Associates, CPA, PA - Auditor location: Fairfield, NJ - Contact: Darryl Glatthorn - Phone: 203-222-7400 - Signed by: Darryl J. Glatthorn (Managing Partner) Original filing: https://www.sec.gov/Archives/edgar/data/1289009/000128900921000001/equuspublic2020.pdf --- {0}------------------------------------------------ **Equus Financial Consulting, LLC Statement of Financial Condition December 31, 2020** {1}------------------------------------------------ UNITEDSTATES SECURITIES ANDEXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 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 | 01/01/20
MM/DD/YY | AND ENDING | 12/31/20 | | | | |---------------------------------------------------------------------------------------------|--------------------------------------------------------|------------|--------------------------------|--|--|--| | MM/DD/YY
A. REGISTRANT IDENTIFICATION | | | | | | | | NAME OF BROKER-DEALER: Equus Financial Consulting LLC | | | OFFICIAL USE ONLY | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | 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* | | | | | | | | Alperin, Nebbia & Associates, CPA, PA | | | | | | | | | (Name - if individual, state last, first, middle name) | | | | | | | 375 Passaic Avenue, Suite 200 Fairfield | | NJ | 07004 | | | | | (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 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)(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 OMB control number. {2}------------------------------------------------ #### OATH OR AFFIRMATION #### Darryl J. Glatthorn L 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 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ of December 31 a firm) a more and correct. I further swear (or affirm) are true and correct. I further swear (or affirm) that 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: | o exceptions | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Signature | | Managing Partner
Title
VENEREEN C LEE
Notary Public
Connecticut
My Commission Expires Mar 31, 2021
Notary Public | | This report ** contains (check all applicable boxes):
(a) Facing Page.
(b) 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) 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 the Computation 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, 2020** | | Page(s) | |------------------------------------------------------------|---------| | Report
of Independent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | 2 | | Notes to Statement of Financial Condition | 3-5 | {4}------------------------------------------------ 375 Passaic Avenue Suite 200 Fairfield, NJ 07004 973-808-8801 Fax 973-808-8804 ![](_page_4_Picture_1.jpeg) Steven J. Alperin, CPA Vincent Nebbia, CPA Jeffrey M. Seligmuller, CPA Roger J. Hitchuk, CPA #### Report of Independent Registered Public Accounting Firm To the Member of Equus Financial Consulting, LLC #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Equus Financial Consulting, LLC as of December 31, 2020, and the related notes (collectively referred to as the financial consuming, LLC as of December of presents fairly, in all material respects, the financial position of Equilting, in "thinklik studinent in thirdler statiment conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion The statement of financial condition is the responsibility of Equus Financial Consulting, LLC's management. Our responsibility is to express an opinion on Equus Tinancial Consulting, LLC's financial statement. Qurisung, Uur audi. We are a public accounting firm registered with the Public Company Accounting States) on our addit. We are are a required to be independent with respect to Equal Financis Coosulting, LLC 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 esurance about when in the i chouse standards require mat we plan and perform, 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 of probadio to assess the hiss on hise and missialement of the Inforcedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting and and sincificant estimates made by management, as well as evaluating the overall presentation of the financial statement. We belinates made by management, as well as swamating We have served as the Company's auditor since 2020. Alperin, Nebbia & Associates, CPA, PA Fairfield, New Jersey February 22, 2021 {5}------------------------------------------------ | SSEIS: | | |-----------------------------------|--------------| | Cash and cash equivalents | 136.258
ಕ | | Accounts receivable | 1.281.444 | | Prepaid expenses and other assets | 18.354 | | Total assets | \$ 1.436.056 | | Liabilities : | | |---------------------------------------|--------------| | Commissions payable | \$ 1.175.694 | | Accounts payable and accrued expenses | 25,182 | | Total liabilities | 1.200.876 | | Member's equity | 235,180 | | Total liabilities and member's equity | \$ 1.436.056 | 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 statement has been prepared in accordance with accounting principles generally accepted in the United States of America. #### Use of Estimates The preparation of this financial statement 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 this financial statement. 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, 2020. #### 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, 2020, no allowance for doubtful accounts was deemed necessary. #### 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. {7}------------------------------------------------ #### 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 2017, 2018, 2019, 2020. #### **2. Commitments and Contingencies** The Company rents office space in Connecticut on a month-to-month basis. 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 of the Company. The Company had no contingent liabilities and has not been named as a defendant in any lawsuit at December 31, 2020 or during the year then ended. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic, which continues to spread globally. While the disruption is currently expected to be temporary, there is uncertainty around the duration. At this stage, the impact on our business and results has not been significant and based on our experience to date we expect this to remain the case. We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our operations in the best and safest way possible without jeopardizing the health of our people. #### **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, 2020, the Company's net capital balance as defined by SEC Rule 15c3-1 was \$111,076 which exceeded the minimum requirement of \$80,058 by \$31,018. At December 31, 2020, the Company's aggregate indebtedness to net capital as defined by SEC Rule 15c3-1 was 10.8 to 1.0. The Company is not required to claim exemption from Rule 15c3-3(k) of the Securities and Exchange Commission (SEC), as the Company is considered a "Non-Covered Firm" by Footnote 74 issued by the SEC in July 2020. This is based on the Company only conducting non-covered activities, as described in Footnote 74. {8}------------------------------------------------ ## **4. Liabilities Subordinated to the Claims of General Creditors** As of December 31, 2020, 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.