# GLOBAL CREDIT PARTNERS, LLC X-17A-5 (2022-02-22) — Broker-dealer annual report - Company: GLOBAL CREDIT PARTNERS, LLC - Form: X-17A-5 - Filed: 2022-02-22 - Period: 2021-12-31 - Accession: 0001319671-22-000002 - CIK: 1319671 - File #: 8-66850 - Type: Broker-dealer - Material weakness: No - Auditor: Goldman & Company, CPA's, P.C. - Auditor location: Marietta, GA - Contact: Carol Ann Kinzer - Phone: 67-525-0992 - Signed by: Vincent Priolo (President) Original filing: https://www.sec.gov/Archives/edgar/data/1319671/000131967122000002/globalcredit2021public.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION** **Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART Ill** | hours per response: 12 | | | | | |------------------------|-----------------|--|--|--| | | SEC FILE NUMBER | | | | | | 8-66850 | | | | **FACING PAGE** Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FILING FOR THE PERIOD BEGINNING | __
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_ | |-----------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|--------------------------------------------| | | MM/0D/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAM E OF Fl RM: _ __,G,,l><.ob,.,a.,,l,.C<.lr><;ed.,_,i_t .,_P_ar,t'-'n.,._er,,s,_ • ,LL,_C,_ | ____ | _________
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_ | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | 0: Broker-dealer | D Security-based swap dealer | D Major security-based swap participant | | | D Check here if respondent is also an OTC derivatives dealer | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | 10 Mountainview Road, Suite 115 | | | | | | {No. and Street) | | | | Upper Saddle River | NJ | | 07458 | | {City) | {State) | | {Zip Code) | | PERSON TO CONTACT W ITH REGARD TO THIS FILING | | | | | Carol Ann Kinzer | 678-525-0992 | | | | {Name) | {Area Code - Telephone Number) | | {Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | Goldman & Company, CPA's, P.C. | {Name - if individual, state last, first, and middle name) | | | | | | | | | 3535 Roswell Road, Su ite 32 | Marietta | GA
{State} | 30062
{Zip Code) | | {Address) | {City) | | | | 6/25/2009 | | 1952 | | | {Date of Registration with PCAOB){if applicable) | FOR OFFICIAL USE ONLY | | {PCAOB Registration Number, if applicable) | | | | | | | | * Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S{e)(l){li), if applicable. Persons who are to respond to the collection of informat ion contained in this form are not required to respond unless the form displays a currently valid 0MB control number. {1}------------------------------------------------ ## **OATH OR AFFIRMATION** I, Vincent Priolo swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Global Credit Partners LLC as of December 31 2~ is true and correct. I further swear (or affirm) that neither the company nor any partr.Gr, .officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified soleiy as that of a customer. ![](_page_1_Picture_4.jpeg) **MELANIE ODATAllA NOTARY PUBLIC** State of **New Jefsey ID# 50168813 My Commission Elq:xres August 17, 202e** | Title: | | | |--------|-----------|--| | | President | | ## y ;blic #### **This filing\*\* contains (check all applicable boxes):** - ~ (a) Statement of financial condition. - Q3 (b) Notes to consolidated statement offinancial condition. - D (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 (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D {f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D {h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - 0 (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. - C (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D {I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D {n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3{p)(2) or 17 CFR 240.18a-4, as applicable. - 0 (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - [23 (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D {s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 0 (t) Independent public accountant's report based on an examination of the statement of financial condition. - 0 (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statement s in the compliance report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - □ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.l 7a-5 or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). D(z) Other:------ --------------------------------- - - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7{d)(2), as app/icoble.* {2}------------------------------------------------ **GLOBAL CREDIT PARTNERS, LLC** (A LIMITED LIABILITY COMPANY) FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 , 2021 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM {3}------------------------------------------------ ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members and management 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, 2021, 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, 202 1 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 Pa11ners, 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 Pa11ners, 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, 2022 35 35 Rosw e ll Road · Suite 32 · rv1a rie tta, GA 300 62 • 770 .499.8558 • F a x 770.425.368 3 {4}------------------------------------------------ # **GLOBAL CREDIT PARTNERS, LLC** (A LIMITED LIABILITY COMPANY) ## **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021** ## **ASSETS** | Cash and cash equivalents | | \$
314,033 | |-------------------------------------|----------------------------------------------------|---------------| | Deposits with clearing organization | | 200,627 | | Commissions receivable | | 52,215 | | Prepaid expenses | | 21 ,269 | | | Office furniture and equipment, net of accumulated | | | depreciation of \$148,754 | | 663 | | Deposits | | 15,602 | | | | | | TOTAL ASSETS | | 604,409 | | | | | # **LIABILITIES AND MEMBERS' EQUITY** | LIABILITIES
Commissions payable
Accrued expenses | \$
32,451
2,458 | |--------------------------------------------------------|-----------------------| | TOTAL LIABILITIES | I
34,909 | | MEMBERS' EQUITY | I
569,500 | | TOTAL LIABILITIES & MEMBERS' EQUITY | I :i;
604,409 | | | | 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 , 2021 ## **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 2021 is \$171. {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 FASS 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 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. {7}------------------------------------------------ # **1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED** 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 , 2021 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, 2021 is \$52,215. 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 , 2021 is \$32,451. # **5. PAYCHECK PROTECTION PROGRAM (PPP) LOAN FORGIVENESS** In April 2020 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 forgiven in July 2021 and is reflected as gain on extinguishment on debt on the accompanying statement of operations and statement of cash flows. {8}------------------------------------------------ # **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, 2021, the Company had net capital of \$531 ,966, which was \$526,966 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 0.07 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, 2021. The Company's rent expense for the year ended December 31 , 2021 was \$36,000. #### **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 , 2021 the Company experienced no material net losses as result of the indemnity. #### **9. UNCERTAINTY** On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-1 9) 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 COVI D -1 9'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. {9}------------------------------------------------ ## **10.SUBSEQUENT EVENTS** The Company has evaluated subsequent events through February 15, 2022, the date that its financial statements were issued. Effective January 27, 2022 the Company suspended trading and is currently evaluating changes to its business model going forward. The effects of the suspension of trading may have a material impact on the 2022 Statements of Financial Condition, Operations and Cash Flows. At this time the Company has not decided to de-register as a securities broker-dealer. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.