# SEACAP SECURITIES LLC X-17A-5 (2020-02-27) — Broker-dealer annual report - Company: SEACAP SECURITIES LLC - Form: X-17A-5 - Filed: 2020-02-27 - Period: 2019-12-31 - Accession: 0001314296-20-000001 - CIK: 1314296 - File #: 8-66804 - Material weakness: No - Auditor: RSGNC&S CERTIFITED PUBLIC ACCOUNTANT PPL - Auditor location: WOODBURY, NY - Contact: Michael T Marrone - Phone: 646-930-1906 - Signed by: MARGARET CHAN (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1314296/000131429620000001/seacap2019bsonly2.pdf --- {0}------------------------------------------------ **lJNITEDSTATES SEClJRITIESANDEXCHANGECOMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours per response ..... . 12.00 SEC FILE NUMBER **B-66804** # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** **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 T HE PERIOD BEGINNING 01/01/2019 AND ENDING 12/31/2019 # **A. REGISTRANT IDENTIFICATION** NAME OF BROKER-DEALER: SEACAP SECURITIES LLC OFFICIAL USE ONLY ADDR ESS O F PRI NCIPAL PLACE O F BUS INESS: (Do not use P.O. Box No .) FIRM I.D. **NO.** # 392 SPRINGFIELD AVE, 2ND FLOOR (No. and Street) SUMMIT NJ 07901 (City) (State) (Zip Code) NAME AN D TELEPHONE NUM BER OF PERSON TO CONTACT IN REGA RD TO T HIS REPO RT MICHAEL T MARRONE (Area Code - Telephone Number) # **B. ACCOUNT ANT IDENTIFICATION** IN DEPEN DENT PUBLIC ACCOUNTANT whose opi ni on is contained in this Report\* # RSGNC&S CERTIFITED PUBLIC ACCOUNTANT PPL (Name - if *individual. state last. first, middle name)* | | 97 FROEHLICH FARM BLVD | WOODBURY | NY | 11797 | |-----------|------------------------|----------|---------|------------| | (Address) | | (City) | (State) | (Zip Code) | **CHECK ONE:** [Z] certified Pub lic Accountant ublic 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. l 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. SEC 1410 (06-02) | rort for the period beginning 01/01/20 | | | |----------------------------------------|--|--| |----------------------------------------|--|--| ----------- MM/DD/YY MM/DD/YY 646-930-1906 | (Area Code - Telephone Number) | | | |--------------------------------|--|--| {1}------------------------------------------------ #### **OATH OR AFFIRMATION** I, MARGARET CHAN , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of SEACAP SECURITIES LLC ------------------------------------------- ----, as of DECEMBER 31 20 19 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: | | ,,,,1111,,,,
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: ~ARYPUBuc 1 0 ~ | | | | | | | | | | | | | CEO | | | | Title | | | | | | | This report ** contains (check all applicable boxes): | | | | 0 (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 Requ irements Under Rule 15c3-3 . | | | 0 (j) | A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-l and the | | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | | | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | | consolidation. | | | | 0 (I) An Oath or Affirmation
0 (m) A copy of the SIPC Supplemental Report. | | | | | 0 (n) A report describing any material inadequacies found to exist or 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).* {2}------------------------------------------------ ## SEACAP SECURITIES LLC ## STATEMENT OF FINANCIAL CONDITION AND INDEPENDENT AUDITORS' REPORT DECEMBER 31, 2019 {3}------------------------------------------------ # SEACAP SECURITIES LLC # TABLE OF CONTENTS # December 31 , 2019 | | Page | |---------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm | 1 | | Financial Statements | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3-6 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) **CERTIFIED PUBLIC ACCOUNTANTS PLLC** Mark C. Goldberg CPA Mark Raphael CPA Aoria Samii-Nikpour CPA Allan B. Cohen CPA Michael R. Sullivan CPA Anita C. Jacobsen CPA Founding Partner: Melvin Goldberg CPA #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of SeaCap Securities LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of SeaCap Securities LLC (the "Company") (a Delaware limited liability company), as of December 31, 2019, and the related notes to the financial statement. In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of SeaCap Securities LLC 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. Raphael Goldberg Nikpour Cohen & Sullivan Certified Public Accountants PLLC We have served as the Company's auditors since 2003. Woodbury, New York February 28, 2020 {5}------------------------------------------------ # **SEACAP SECURITIES LLC** STATEMENT OF FINANCIAL CONDITION DECEMBER 31 , 2019 ## **ASSETS** | Current Assets | | |----------------|--------------| | Cash | \$
86,404 | | Prepaids | 2,912 | | | | | Total Assets | \$
89,316 | #### **LIABILITIES AND MEMBER'S EQUITY** #### **Current Liabilities** | Total Liabilities and Member's Equity | \$
89,316 | |---------------------------------------|--------------| | MEMBER'S EQUITY | 69,834 | | Total Liabilities | 19,482 | | Due to Affiliate | 11,726 | | Accrued Expenses | \$
7,756 | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ # **SEACAP SECURITIES LLC** NOTES TO FINANCIAL STATEMENTS DECEMBER 31 , 2019 # Note 1 - Business Summary Seacap Securities LLC (the "Company") is a registered broker/dealer and a member of the Financial Industry Regulatory Authority (FINRA). The Company does not clear securities transactions or carry customers' accounts on a fully disclosed basis. Accordingly, the Company operates under the provisions of Paragraph (k)(2)(i) of Rule 15c3-3 of the Securities and Exchange Act of 1934 and is exempt from the remaining provisions of that rule. The Company provides financial advisory and investment banking services to aviation and related industries as well as small and medium-size corporations. Services consist of secured asset-based financings, private and public debUequity offerings and placements, corporate finance and merger and acquisition advisory services. ## Note 2 - Summary of Significant Accounting Policies ## Statement of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, demand deposits and bank money market accounts with banks or financial institutions with original maturities of three months or less. ## Accrual Basis of Accounting The Company's financial statements are prepared using the accrual method of accounting. The Company's year-end is December 31 . #### Recent accounting pronouncements In February 2016, the FASB issued (ASU) 2016-02, "Leases (Topic 842)". This update includes a lease accounting model that recognizes two types of leases - finance leases and operating leases. The standard requires that a lessee recognize on the balance sheet assets and liabilities relating to leases with terms of more than 12 months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on its classification as a finance or operating lease, and is effective for the Company beginning in January 2019. The Company does not have any direct leases, and any expenses related to leases is through the expense sharing agreement with the Parent. {7}------------------------------------------------ # **SEACAP SECURITIES LLC** NOTES TO FINANCIAL STATEMENTS DECEMBER 31 , 2019 # Note 2 - Summary of Significant Accounting Policies (continued) ## Income Taxes The Company is a Limited Liability Company. Therefore, no provisions for federal or state taxes are made by the Company. Members of a Limited Liability Company are individually taxes on their pro-rata share of the Company's earnings. The Company is liable for taxes in several states and New York City. The Company is a taxable entity in the state of California and the District of Columbia. ## Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted requires management to make estimates and assumptions that affect the reported amounts and disclosures. Accordingly, actual results could differ from those estimates. ## Note 3 - Regulatory Requirements ## Net Capital Requirements The Company is subject to the Securities and Exchange Commission basic Uniform Net Capital Rule (Rule 15c3-1) which requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Net capital and the related net capital ratio may fluctuate on a daily basis. At December 31 , 2018 the Company had net capital of \$63,851 , which was \$13,851 in excess of its required net capital of \$50,000. The Company's ratio of aggregate indebtedness to net capital at December 31 , 2018 was 12.87%. ## Exemption from Rule 15c3-3 The Company is exempt from SEC Rule 15c3-3 pursuant to the exemption provision of such paragraph (k)(2)(i) and, therefore, is not required to maintain a "Special Reserve Bank Account for the Exclusive Benefit of customers." {8}------------------------------------------------ # **SEACAP SECURITIES LLC** NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 #### Note 4 - Concentration of Credit Risk The Company maintains cash in bank accounts which at times may exceed federally insured limits. The Company has not experienced any loss in this account and believes it is not subject to any significant credit risk. #### Note 5 - Related Party Transactions Pursuant to a service agreement, the Company's affiliate provides various services and other operating assistance to the Company. These include professional fees, use of fixed assets, travel, insurance, subscriptions, taxes, personnel, benefits and other general and administrative services. The total amount of intercompany charges incurred by the Company was approximately \$24,000. , #### Note 6 - Fair Value Effective January 1, 2008, the company adopted Statement of Financial Accounting Standards ("SFAS") ASC 820 "Fair Value Measurements and Disclosures," for assets and liabilities measured at fair value on a recurring basis. The adoption of ASC 820 had no effect on the Company's financial statements. ASC 820 accomplished the following key objectives: Defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; Establishes a three-level hierarchy (the "Valuation Hierarchy") for fair value Measurements; Requires consideration of the Company's creditworthiness when valuing liabilities; and Expands disclosures about instruments measured at fair value. {9}------------------------------------------------ ## **SEACAP SECURITIES LLC** NOTES TO FINANCIAL STATEMENTS DECEMBER 31 , 2019 The Valuation Hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument's categorization within the Valuation Hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of the Valuation Hierarchy and the distribution of the Company's financial assets within it are as follows: Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets of liabilities in active markets. Level 2 - inputs to the valuation methodology included quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset of liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3- inputs to the valuation methodology are unobservable and significant to the fair value measurement. Certain financial instruments are carried at cost on the balance sheet, which approximates fair value due to their short-term, highly liquid nature. These instruments include cash and cash equivalents, account receivable, accrued expenses and other liabilities, and deferred revenue. ### Note 7 - Subsequent Events These financial statements were approved by management and available for issuance on February 28, 2019. Subsequent events have been evaluated through that date. #### Note 8 - Uncertain Tax Positions The Company's federal, state, and local tax returns are subject to possible examination by the taxing authorities until expiration of the related statutes of limitations on those tax returns. In general, the federal and state income tax returns have a three-year statute of limitations. The Company would recognize accrued interest and penalties associated with uncertain tax positions, if any, as part of the income tax provision. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.