# GLOBAL CREDIT PARTNERS, LLC X-17A-5 (2021-02-12) — Broker-dealer annual report - Company: GLOBAL CREDIT PARTNERS, LLC - Form: X-17A-5 - Filed: 2021-02-12 - Period: 2020-12-31 - Accession: 0001319671-21-000001 - CIK: 1319671 - File #: 8-66850 - Material weakness: No - Auditor: Goldman & Company, CPA's, P.C. - 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/1319671/000131967121000001/public2020gcp.pdf --- {0}------------------------------------------------ UNITEDSTATES SECURITIES ANDEXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Ettimated average burden hours per response .. . . 12,00 B- 66850 SECFILE NUMBER # ANNUAL AUDITED REPORT FORM X-17A-5 PART III # FACING PAGE Information Required of Brokers and Dealers Pursnant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | REPORT FOR THE FERIOD BEGINNING 1/1/2020 | MM/DD/YY | AND ENDING | 12/31/2020
MM/DD/YV | | |-------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|-------------------|------------------------|--| | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER Global Credit Partners, LLC
ADDRESS OF PRINCIPAL PLACE OF RUSINESS: (Do not use P.O. Box No.) | | OFFICIAL USE ONLY | | | | | | | FRM LD. NO. | | | 10 Mountainview Road, Suite 115 | | | | | | | (No. And Strace) | | | | | Upper Saddle River | NJ | | 07458 | | | (Cily) | (Sinter | | IZip Code | | | INDEPENDENT PUBLIC ACCOUNTANT whose apinton is contained in this Report"
Goldman & Company, CPA's. P.C. | B. ACCOUNTANT IDCATIEICATION | | | | | | (Numm - (f indivisions), state inst, frost, middle names | | | | | 3535 Roswell Rd. Suite 32 | Marietta | GA | 30082 | | | A dal ess | (Chy) | SIMICA | 17 in Cadel | | | CHECK ONE!
Certified Public Accountant
Public Accomant
Accountant not resident in United States or any of its possessions. | | | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | Claims for exemption from the requirement that the amnial report be covered by the opinion of an independent public accomitant must be supported by a stationent of facts and climitances reluded on as the basis for the exemption. Sat Section 340. 170-5(0)(20 > Patential persons who are to respond to the collection of Information contained in this form are not required to respond unlexs the form displays a currently valld OMB control number. SEC 1410 (11-05) {1}------------------------------------------------ # OATH OR AFFIRMATION | | Vincent Priola | | swear (of affirm) that, to the best we | |--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------| | | my knowledge and belief the accompanying financial statement and simporting schedules pertaining to the firm of
Global Credit Partners, LLC | | | | 181 | | | December 31 = 20 20 are true and correct. I firther swear (or affirm) that | | | neither the company one uny participal officer or director has my proprietury interest in any account
classified solely as that of a costomer, except us follows | | | | | | Signature | | | | | President | | | - (B)
बब्बा बिर | Notary Publis
This report #4, contains (check all applicable boxes)
Facing Page.
(h) Statement of Financial Condition
(1) Statement of income (Loss) or, if there is other comprehensive in the period(s) presented, a Stutement
of Comprohensive 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
(1) Statement of Changes in Linhillies Subordinated to Claims of Creditors.
(g) Computation of Not Capital.
(h) Computation for Determination of Reserve Reguirements Pursuant to Rule 1503-3. | Inte
AIGOBERTO JORGE
Notary Public . State of New Jersey
My Commission Expires Jul 6. 2021 | | | | (t) Information Relating to the Possession or Control Requirements Under Rule 15c3-3,
(i) A Reconciliation, including appropriate explanation of the Computation of Not Capital Under Rule 15c3-1 and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15ch-3. | | | | | (k) A Reconciliation between the audited Statements at Financial Condition with respect to mcthods of
consolidation.
(II An Oath or Affirmation | | | | | (m) A copy of the SIPC Supplemental Report,
(i) A report describity any matorial inadequacies found to exist on lound lo have exated since of the previous and in | | | | | ** For conditions of confidential treatment of certain portions of this filling, see section 240.17a-5(2). | | | {2}------------------------------------------------ ### **INDEPENDENT AUDITORS' REPORT** To the Members Global Credit Partners, LLC Upper Saddle River, NJ {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, 2020, 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, 2020 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 15, 2021 {4}------------------------------------------------ # **GLOBAL CREDIT PARTNERS, LLC** (A LIMITED LIABILITY COMPANY) ### **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020** #### **ASSETS** | Cash and cash equivalents | \$ | 497,230 | |----------------------------------------------------|---------|---------| | Deposits with clearing organization | | 200,627 | | Commissions receivable | | 129,561 | | Prepaid expenses | | 28,385 | | Office furniture and equipment, net of accumulated | | | | depreciation of \$148,583 | | 834 | | Deposits | | 15,602 | | | | | | TOTAL ASSETS | I
\$ | 872,239 | | | | | # **LIABILITIES AND MEMBERS' EQUITY** | LIABILITIES | | | |-------------------------------------|---------|---------| | Commissions payable | \$ | 110,431 | | Accrued expenses | | 7,071 | | Paycheck Protection Program loan | | 155,295 | | TOTAL LIABILITIES | I | 272,797 | | | | | | MEMBERS' EQUITY | I | 599,442 | | | | | | TOTAL LIABILITIES & MEMBERS' EQUITY | I
\$ | 872,239 | | | | | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ # **GLOBAL CREDIT PARTNERS, LLC** (A LIMITED LIABILITY COMPANY) # DECEMBER 31, 2020 NOTES TO FINANCIAL STATEMENTS # **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. As a limited liability company the members' liability is limited to their equity contribution. #### 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 2020 is \$281. {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. # Leases The Company recognizes and measures its leases in accordance with FASB ASC 842, Leases. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existing contract are changed. The Company recognizes a lease liability and a right of use (ROU) asset at the commencement date of the lease. The lease liability is initially and subsequently recognized based on the present value of its future lease payments. Variable payments are included in the future lease payments when those variable payments depend on an index or a rate. The discount rate is the implicit rate if it is readily determinable or otherwise the Company uses its incremental borrowing rate. The implicit rates of our leases are not readily determinable and accordingly, we use our incremental borrowing rate based on the information available at the commencement date for all leases. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The ROU asset is subsequently {7}------------------------------------------------ # **1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED** measured throughout the lease term at the amount of the remeasured lease liability (i.e., present value of the remaining lease payments), plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received, and any impairment recognized. Lease cost for lease payments is recognized on a straight-line basis over the lease term. The Company has elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement, and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes lease cost associated with our short-term leases on a straight-line basis over the lease term. The Company is evaluating new accounting standards and will implement as required. # **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, 2020 is \$200,627. # **3. REVENUE FROM CONTRACTS WITH CUSTOMERS** In accordance with ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, "ASC 606") the Company recognizes revenue upon satisfaction of performance obligations by transferring control over goods or service to a customer. # Commissions: The Company buys and sells securities on behalf of its counterparties. Each time a counterparty enters into a buy or sell transaction, the Company charges a markup/markdown. The markup/markdown 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 counterparty). 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 counterparty. # **4. COMMISSIONS RECEIVABLE AND PAYABLE** Commissions receivable as of December 31, 2020 is \$129,561. Management believes no reserve is necessary as all accounts receivable are current and are expected to be collectible. Commissions receivable are due upon services rendered. The Company pays a portion of its commissions earned to its representatives. Commissions payable to representatives as of December 31, 2020 is \$110,431. {8}------------------------------------------------ # **5. PAYCHECK PROTECTION PROGRAM LOAN** The Company received a loan in the amount of \$155,295 under the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan was made in April 2020 and may be forgiven to the extent proceeds of the loan are used for eligible expenditures such as payroll and other expenses described in the CARES Act. The Company has spent 100% of loan proceeds to pay eligible expenses and expects the loan to be forgiven. The loan bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 24 months beginning 10 months from the date of the last date of the covered period. The loan may be repaid at any time with no prepayment penalty. # **6. 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, 2020, the Company had net capital of \$709,916, which was \$702,083 in excess of its required net capital of \$7,833. The Company's ratio of aggregate indebtedness to net capital was 0.17 to 1. # **7. COMMITMENTS** #### Lease: The Company has an obligation under an operating lease for office space 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. On January 16, 2020 the Company entered into an agreement to extend the lease term on a month-to-month basis commencing March 1, 2020. The agreement is cancellable by either party upon 60 days written notice. Due to the uncertainty inherent in the month-to-month agreements such payments are not included as a lease asset or liability as of December 31, 2020. The Company's rent expense for the year ended December 31, 2020 was \$40,047. # **8. 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, 2020 the Company experienced no material net losses as result of the indemnity. {9}------------------------------------------------ # **9. SUBSEQUENT EVENTS** On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The COVID -19 pandemic has continued to spread and has already caused severe global disruptions. The extent of COVID -19's effect on our operational and finance performance will depend on future developments, including the duration, spread and intensity of the pandemic, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. As of the date of the independent registered public accounting firm report, the Company cannot reasonable estimate the length or severity of this pandemic, or the extent to which the disruption may materially impact the Company's financial position, results of operations, and cash flows in the year ending 2021. The Company has evaluated subsequent events through February 15, 2021 the date that its financial statements were issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.