# SEACAP SECURITIES LLC X-17A-5 (2021-02-26) — Broker-dealer annual report
- Company: SEACAP SECURITIES LLC
- Form: X-17A-5
- Filed: 2021-02-26
- Period: 2020-12-31
- Accession: 0001314296-21-000001
- CIK: 1314296
- File #: 8-66804
- Material weakness: No
- Auditor: RSGNC&S Certifited Public Accountant PPL
- Auditor location: Woodbury, NY
- Contact: Michael T Marrone
- Phone: 6469301906
- Signed by: Margaret Chan (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1314296/000131429621000001/seacap2020bsonlyb.pdf
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**UNITEDSTATES SECURITIES ANDEXCHANGECOMMISSION Washington, D.C. 20549**
**ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill**
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| Expires: | | October 31, 2023 |
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| | SEC FILE NUMBER |
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| 8-66052 | |
**FACING PAGE**
**Information Required of Brokers a.nd Dealers Pursuant to Section** 17 **of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder**
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AND ENDING 12/31/2020
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A. REGISTRANT IDENTIFICATION
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
07901 | -
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MM/DD/YY
OFFICIAL USE ONLY
FIRM I.D. NO. |
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| UMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | 646-930-1906
(Area Code - Telephone Number) |
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| NY | 11797 |
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| | B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
(Name - if individual. state last. first, middle name)
Accountant not resident in United States or any of its possessions. |
*must be supported by a statement qf facts and circumstances relied on as the basis for the exemption. See Section 240.1 7 a-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 (11-05)
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#### **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 \_S\_E\_A\_C\_A\_P\_S\_E\_C\_U\_R\_IT\_IE\_S\_L\_L\_C \_ \_ \_ \_\_\_\_\_\_\_ \_ \_ \_ \_\_\_ \_ \_ \_\_\_ \_\_\_ \_\_\_ \_\_ , as
#### of **DECEMBER 31** 20 20 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:
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| | CEO |
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| This report ** contains (check all applicable boxes):
0 (a) Facing Page.
[2] (b) Statement of Financial Condition,
of Comprehensive lncome (as define.din §210. l-02 of Regulation S-X).
D (d) Statement of Changes in Financial Condition.
D (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
D (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 l 5c3-3.
(i) lnformation Relating to the Possession or Control Requirements Under Rule, l 5c3-3. | D (c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented. a Statement
D (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 benveen the audited and unaudited Statements of Financial Condition with respect to methods of |
| consolidation.
§ (I) An Oath or Affirmation
(m) A copy of the SIPC Supplemental Report. | (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. |
| HF or conditions of confidential treatment of certain portions ofthis.fi./ing, see section 240.l 7a-5(e){3). | |
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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 validit of that document. State of California County of **c,,.Sard-zJ** *f!:pcbCV?A* **4""-** Subscribed and sworn to (or affirmed) before me on this I 2 day of *ftb,uo J,* 20..l.L, by Har1°~+ *Ch~an -* --------------- --- ---- --' proved to me on the basis of satisfactory evidence to be the person s) who a e me. (Seal) otary Public -(a\iforni Santa Barbara County Commission# 2184425 Y Comm. Expires Mar 21 , 2021
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# SEACAP SECURITIES LLC
## STATEMENT OF FINANCIAL CONDITION AND INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 2020
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# SEACAP SECURITIES LLC
# TABLE OF CONTENTS
December 31, 2020
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| Report of Independent Registered Public Accounting Firm | 1 |
| Financial Statements | |
| Statement of Financial Condition | 2 |
| Notes to Financial Statements | 3-6 |
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Mark C. Goldberg, CPA Mark Raphael, CPA floria Samii-Nikpour, CPA Allon B. Cohen, CPA Michael R. Sullivan, CPA
Founding Partner: Melvin Goldberg, CPA
Anita C. Jacobsen, 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 , 2020, 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 , 2020 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 27, 2021
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## **SEACAP SECURITIES LLC**
# STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020
## **ASSETS**
| Current Assets | |
|----------------|--------------|
| Cash | \$
72,652 |
| Prepaids | 2,912 |
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| Total Assets | \$
75,564 |
#### **LIABILITIES AND MEMBER'S EQUITY**
#### **Current Liabilities**
| Accrued Expenses
Due to Affiliate | \$
5,500
5,629 |
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| Total Liabilities | 11,129 |
| MEMBER'S EQUITY | 64,435 |
| Total Liabilities and Member's Equity | \$
75,564 |
The accompanying notes are an integral part of these financial statements.
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#### 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 carry securities accounts for customers or perform custodial functions relating to customer securities and does not claim exemption from the Customer Protection Rule but limits its business activities to those specified in footnote 7 4 of SEC Release No. 34-70073.
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 debt/equity 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.
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# 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, 2019 the Company had net capital of \$61,523, which was \$11,523 in excess of its required net capital of \$50,000. The Company's ratio of aggregate indebtedness to net capital at December 31, 2019 was 18.09%.
## Exemption from Rule 15c3-3
The Company is does not claim exemption from the Customer Protection Rule but limits its business activities to those specified in footnote 74 of SEC Release No. 34- 70073.
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## 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.
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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 - Risk and Uncertainties -COVID-19
Subsequent to December 31, 2020, the pandemic caused by the spread of COVID-19 has impacted most countries, communities, and markets. The extent to which the COVID-19 pandemic may impact our business, financial condition, liquidity, results of operations, or prospects will depend on numerous evolving factors that are out of our control and that we are not able to predict at this time.
#### 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.
#### Note 9 - Subsequent Events
These financial statements were approved by management and available for issuance on February 27, 2021. Subsequent events have been evaluated through that date.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.