# GLOBAL CREDIT PARTNERS, LLC X-17A-5 (2019-02-27) — Broker-dealer annual report - Company: GLOBAL CREDIT PARTNERS, LLC - Form: X-17A-5 - Filed: 2019-02-27 - Period: 2018-12-31 - Accession: 0001319671-19-000001 - CIK: 1319671 - File #: 8-66850 - Material weakness: No - Auditor: Goldman & Company, CPA's - Auditor location: Marietta, GA - Contact: Carol Ann Kinzer - Phone: 678-525-0992 - Signed by: Vincent Priolo (President) Original filing: https://www.sec.gov/Archives/edgar/data/1319671/000131967119000001/gcp2018public.pdf --- {0}------------------------------------------------ # **GLOBAL CREDIT PARTNERS, LLC** (A LIMITED LIABILITY COMPANY) FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM {1}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANAL ECO A NIS AON Washington, D.C. 20549 OMB APPROVAL QMBNumber: 3235-0123 Expires: August 31, 2020 Estimatedaverage ourden hours per response ... .. . 12.00 SEC FILE NUMBER B-66850 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Sceurities Exchange Act of 1934 and Rule 17a-5 Thereunder | REPORT FOR THE PERIOD BEGINNING 01/01/2018 | | AND ENDING 12/31/2018 | | | |--------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|-----------------------|-------------------|--------------------------------| | | MM:DD/YY | | MM: DD: YY | | | | A REGIS TRANT IDENTIFICATION | | | | | NAME OF BROKER -DEALER: Global Credit Partners, LLG
ADDRESS OF PRINCIPAL PLACE OF HUSINESS: (Du nel use P.O. Box No.) | | | OFFICIAL USE ONLY | | | | | | | FRM I.D. NO. | | 10 Mountainview Road, Suite 115 | | | | | | | (No. and Streets | | | | | Upper Saddle River | NJ | | 07458 | | | (City) | (Suite)) | | (Kip Unite) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Carol Ann 3C mzei 1878-525-0992 | | | | | | | | | | (Area Code - The phone Number) | | | B ACCOUNTANT IDENTIFICATION | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report® | | | | | | Goldman & Company, CPA's, P.C. | | | | | | | (Name - If ardividual, state last, fast, first, middle name) | | | | | 3535 Roswell Rd. Suite 32 | Marietta | GA | | 30062 | | (Address) | (City) | (Stale) | | (212 Code) | | CHECK ONE: | | | | | | Certified Public Accomant | | | | | | Punlic Accountan1 | | | | | | Accountant not resident in United States or any ofits possessions, | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | \*Claims for exempliem from the requirement that the amual myor be opinion of an independent public accounant must be supported by a statement of feets and chromstones reded on as the basis for the exempton. See feel 2) > Potential persons who are to respond to the collection of information contained in this form are not raquired to respond unless the form displays a currently valid OMB control number. SEC 1410 (06-02) {2}------------------------------------------------ # OATH OR AFFIRMATION | | my knowledge and belief the accompun; ing Imancial statement and supporting schedules netraining in the fim of | |-----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Global Credit Partn Partn , LL | | | of Desembe 131 _ | the court and correct. I further svear (or affirm) that | | classified solely as that of a customer, except us follows: | bether the company not are partier, principal official official of the any proprietary interest in any account | | | | | | Signature | | | Prasident | | | Title | | Notary Publi
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This report to contains (checkall applicable boxes):
(a). Facing Page.
(b) Statement of Financial Condition. | 25-11
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RIGOBERTO JORGE
Motary Public - Stale of Niew Jersey
My CommissionExpires July, 2021 | | बराबार
(c) Statement of Income (Loss) | | | (d) Siatement of Changes in Financial Condition, | | | (1) Siatement of Changes in Liabitities Subordinated to Claims of Creditors, | (e) Statement of Changes in Stockholders' E.doty or Parmers' or Sole Proprieters' Capital, | | (g) Compulation of Not Capital. | (b) Compulation for Belermination of Reserve Requirements Porsyant (o Rute 15c3-3. | | | (i) Information Relating to the Possession or Control Requirements Under Rube 150.7.3, | | | () A Reconciliation. including appropriate explanation of the Compution of Net Capital Under Rule 152-1 and the
Compatation for Deterritination of the Reserve Requirements Under Exhibit A uf Rule 15e3-3. | | consolidation. | (k) A Recondintion between the and unaudited Statements of Financial Coultion with regeed in methods of | | (1) An Oathar Affirmation. | | | (m) A copy of the SIPC Supplemental Report, | | | | (n) A report describing any material mastequacies formal to have existed since the date office previousandin | {3}------------------------------------------------ #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of Global Credit Partners, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Global Credit Partners, LLC as of December 31, 2018, 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 Global Credit Partners, LLC as of December 31, 2018 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of Global Credit Partners, LLC's management. Our responsibility is to express an opinion on Global Credit Partners, LLC'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 Global Credit Partners, 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 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 the Company's auditor since 2015. Goldman & Company, CPA's, P.C. Marietta, Georgia February 26, 2019 {4}------------------------------------------------ # **GLOBAL CREDIT PARTNERS, LLC** (A LIMITED LIABILITY COMPANY) #### **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2018** #### **ASSETS** | Cash and cash equivalents | \$
363,211 | |----------------------------------------------------|---------------| | Deposits with clearing organization | 200,133 | | Commissions receivable | 116,440 | | Prepaid expenses | 51,751 | | Office furniture and equipment, net of accumulated | | | depreciation of \$147,977 | 1,440 | | Deposits | 15,601 | | | | | TOTAL ASSETS | \$
748,576 | | | | ### **LIABILITIES AND MEMBERS' EQUITY** | LIABILITIES
Commissions payable
Accrued expenses | \$
87,038
7,407 | |--------------------------------------------------------|-----------------------| | TOTAL LIABILITIES | 94,445 | | MEMBERS' EQUITY | 654,131 | | TOTAL LIABILITIES & MEMBERS' EQUITY | \$
748,576 | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ # **GLOBAL CREDIT PARTNERS, LLC** (A LIMITED LIABILITY COMPANY) ## NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2018 ## **1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### Nature of Business Global Credit Partners, LLC (a New Jersey limited liability company) (the "Company") is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of various exchanges as well as the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company is engaged in a single line of business as a securities broker-dealer, which comprises several classes of services. #### Basis of Accounting The Company maintains its books and records on the accrual basis of accounting for financial reporting purposes, which is in accordance with U.S. generally accepted accounting principles and is required by the SEC and FINRA. #### Income Taxes The Company is an LLC taxed as a partnership for income tax reporting purposes, and as such, is not subject to income tax. Accordingly, no provision for income taxes is provided in the financial statements. The Company has adopted the provisions of FASB Accounting Standards Codification 740-10, *Accounting for Uncertainty in Income Taxes* . Under FASB ASC 740-10, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position includes an entity's status and the decision not to file a return. The Company has evaluated each of its tax positions and has determined that it has no uncertain tax positions for which a provision or liability for income taxes is necessary. The Company files income tax returns in the U.S. in both federal and state jurisdictions. #### Fixed Assets Office furniture and equipment is stated at cost. Depreciation is computed using the straight line method over the estimated useful lives of the assets (generally five to seven years). Depreciation expense for 2018 is \$404. {6}------------------------------------------------ # **1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED** ## Prepaid expenses Prepaid expenses on the statement of financial condition include: insurance, equipment rental, and Bloomberg fees and are amortized over their useful lives. # Estimates The presentation of financial statements in conformity with U.S. generally accepted accounting principles 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. ### Cash and Cash Equivalents For purposes of the statement of cash flows, the Company defines cash equivalents as highly liquid investments with original maturities of less than ninety days that are not held for sale in the ordinary course of business. ### Concentration of Credit Risk The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk for cash. ### Recently Adopted Accounting Pronouncements On January 1, 2018, the Company adopted ASU 2014-09 *Revenue from Contracts with Customers* and all subsequent amendments to the ASU (collectively, "ASC 606") using the modified retrospective method of adoption. ASC 606 created a single framework for recognizing revenue from contracts with customers that fall within its scope. Under ASC 606 revenue is recognized upon satisfaction of performance obligations by transferring control over goods or service to a customer. The adoption of ASC 606 did not result in any changes to beginning retained earnings for the year ended December 31, 2018 or net income for the preceding year-end. # **2. DEPOSIT WITH CLEARING ORGANIZATION** The Company clears all of its customer transactions through another broker-dealer on a fully disclosed basis (the "clearing organization"). The Company is contractually obligated to maintain a cash deposit with the clearing organization. The amount deposited with the clearing organization as of December 31, 2018 is \$200,133. {7}------------------------------------------------ # **3. REVENUE FROM CONTRACTS WITH CUSTOMERS** #### Commissions: The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. ### Auction Service: The Company is designated as the Broker-Dealer in an agreement, normally with a trustee of a newly restructured entity, to act as auction agent to solicit bids for securities (normally a bond) for the benefit of the issuer as a result of the completed restructuring. The Broker-Dealer is contracted to contact existing and potential new owners and solicit bids for the securities (Dutch Auction format). The Company normally earns a fee for the service associated with the sale of said securities. The Company may also earn a flat fee in the event of a failed auction (no bidders). Revenue is recognized when the service is provided normally when the auction is settled. ### **4. COMMISSIONS RECEIVABLE AND PAYABLE** Commissions receivable as of December 31, 2018 is \$116,440. Management believes no reserve is necessary as all accounts receivable are current and are expected to be collectible. The Company pays a portion of its commissions earned to its representatives. Commissions payable to representatives as of December 31, 2018 is \$87,038. ### **5. NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 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. At December 31, 2018, the Company had net capital of \$585,339, which was \$579,043 in excess of its required net capital of \$6,296. The Company's ratio of aggregate indebtedness to net capital was 0.16 to 1. ### **6. COMMITMENTS** The Company has an obligation under an operating lease with an initial non-cancelable term in excess of one year. On November 12, 2014, the Company entered into an amended lease agreement to extend the term of the lease for the period from March 1, 2015 through February 29, 2020. {8}------------------------------------------------ ## **6. COMMITMENTS (continued)** The Company estimates future rental payments under this lease agreement as follows: | Year ending December 31 | | |-------------------------|--------------| | 2019 | 65,504 | | 2020 | 10,917 | | Total | \$
76,421 | The Company's rent expense for the year ended December 31, 2018 was \$62,870. #### **7. INDEMNIFICATIONS** In the normal course of its business, the Company indemnifies and guarantees certain service providers, such as clearing and custody agents, trustees and administrators, against specified potential losses in connection with their acting as an agent of, or providing services to, the Company or its affiliates. The Company also indemnifies some clients against potential losses incurred in the event specified third-party service providers, including subcustodians and thirdparty brokers, improperly executed transactions. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. For the year ended December 31, 2018 the Company experienced no material net losses as result of the indemnity. ### **8. SUBSEQUENT EVENTS** The Company has evaluated subsequent events through February 26, 2019 the date that its financial statements were issued, and determined that there are no material subsequent events requiring adjustment to, or disclosure in its financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.