# TRANSNATIONAL CAPITAL CORP. X-17A-5 (2024-03-01) — Broker-dealer annual report

- Company: TRANSNATIONAL CAPITAL CORP.
- Form: X-17A-5
- Filed: 2024-03-01
- Period: 2023-12-31
- Accession: 0001324192-24-000001
- CIK: 1324192
- File #: 8-66908
- Type: Broker-dealer
- Material weakness: No
- Auditor: Ohab and Company, PA
- Auditor location: Maitland, FL
- Contact: Ivy Fredericks
- Phone: 2122976262
- Email: ifredericks@transnationalcapital.com
- Website: transnationalcapital.com
- Signed by: Ernest Kappotis (Consultant)

Original filing: https://www.sec.gov/Archives/edgar/data/1324192/000132419224000001/transnatpublicd.pdf

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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 

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SEC FILE NUMBER 8-66908

# **ANNUAL REPORTS FORM X-17A-S PART** Ill

**FACING PAGE** 

**Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** 

| FILING FOR THE PERIOD BEGINNING                                                                                                                                                                                | __<br>__<br>0_1_/_0_1_/2_3                           | AND ENDING | ___             | 1_2_/3_1 /_2_3 __ |  |  |  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|------------|-----------------|-------------------|--|--|--|
|                                                                                                                                                                                                                | MM/DD/YY                                             |            |                 | MM/DD/YY          |  |  |  |
| A. REGISTRANT IDENTIFICATION                                                                                                                                                                                   |                                                      |            |                 |                   |  |  |  |
| NAME oF FIRM: Transnational Capital Corp.                                                                                                                                                                      |                                                      |            |                 |                   |  |  |  |
| TYPE OF REGISTRANT (check all applicable boxes):<br>D Major security-based swap participant<br>D Security-based swap dealer<br>0 Broker-dealer<br>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.)                                                                                                                                            |                                                      |            |                 |                   |  |  |  |
| 420 Lexington Avenue, Suite 300                                                                                                                                                                                |                                                      |            |                 |                   |  |  |  |
| (No. and Street)                                                                                                                                                                                               |                                                      |            |                 |                   |  |  |  |
| New York                                                                                                                                                                                                       | NY                                                   |            |                 | 10170             |  |  |  |
| (City)                                                                                                                                                                                                         | (State)                                              |            |                 | (Zip Code)        |  |  |  |
| PERSON TO CONTACT WITH REGARD TO THIS FILING                                                                                                                                                                   |                                                      |            |                 |                   |  |  |  |
| Ivy Fredericks                                                                                                                                                                                                 | 212-297-6262<br>ifredericks@transnationalcapital.com |            |                 |                   |  |  |  |
| (Name)                                                                                                                                                                                                         | (Area Code - Telephone Number)                       |            | (Email Address) |                   |  |  |  |
| 8. ACCOUNTANT IDENTIFICATION                                                                                                                                                                                   |                                                      |            |                 |                   |  |  |  |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*                                                                                                                                      |                                                      |            |                 |                   |  |  |  |
| Ohab and Company, PA                                                                                                                                                                                           |                                                      |            |                 |                   |  |  |  |
| (Name - if individual, state last, first, and middle name)                                                                                                                                                     |                                                      |            |                 |                   |  |  |  |
| 100 E. Sybelia Ave, Suite 130 Maitland                                                                                                                                                                         |                                                      |            | FL              | 32751             |  |  |  |
| (Address)                                                                                                                                                                                                      | (City)                                               |            | (State)         | (Zip Code)        |  |  |  |
| July 28, 2004                                                                                                                                                                                                  |                                                      | 1839       |                 |                   |  |  |  |
| rte of Reg•traUon wOh PCAOB)I• ap~icab~)<br>(PCAOB Regist<atkm Numbe,, if applicable)]                                                                                                                         |                                                      |            |                 |                   |  |  |  |
| FOR OFFICIAL USE ONLY                                                                                                                                                                                          |                                                      |            |                 |                   |  |  |  |

\* 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)(1)(ii), if applicable.

**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.** 

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#### **OATH OR AFFIRMATION**

I, Ivy Fredericks swear (or affirm) that, to the best of my knowledge and belief, the

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financial report pertaining to the firm of Transnational Capital Corp. as of 12/31 2~ is true and correct. I further swear (or affirm) that neither the company nor any

partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer.

Catherine S. Ahn . y T;itle: , I" State ot New orr. Notary Pub~~ AH0004295 ,\_P~re\_s\_ide\_n\_t \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ **Q** rfi~oi.n Westchester Coun y C~~~ission Expires 03/28/2027

### **This filing\*\* contains (check all applicable boxes):**

- **i!il** (a) Statement offinancial condition.
- ~ (b) Notes to consolidated statement offinancial condition.
- D (c) Statement of income (loss) or, ifthere is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation **5-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.
- □ (g) Notes to consolidated financial statements.
- D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable.
- □ (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- □ 0) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- D (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.
- D ( o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-l, 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.
- **i!il** (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.
- D (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.
- ~ (t) Independent public accountant's report based on an examination of the statement of financial condition.
- D (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 statements in the compliance report under 17 CFR 240.17a-5 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 240.17a-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 statementthat no material inadequacies exist, under 17 CFR 240.17a-12(k). <sup>D</sup>(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-l(d){2), as applicable.

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TRANSNATIONAL CAPITAL CORP. FINANCIAL STATEMENTS DECEMBER 31, 2023

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### **FINANCIAL STATEMENTS**

### FOR THE **YEAR ENDED DECEMBER 31, 2023**

### **TABLE OF CONTENTS**

| Report of Independent Registered Public Accounting Firm |     |
|---------------------------------------------------------|-----|
| Financial Statements                                    |     |
| Statement of Financial Condition                        | 2   |
|                                                         |     |
| Notes to Financial Statements                           | 3-6 |

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![](_page_4_Picture_0.jpeg)

I 00 E. Sybelia Ave. Suite 130 Maitland, FL 32751

*Certified Public Accountants*  Email: pam@ohabco.com

Telephone 407-740-7311 Fax 407-740-6441

### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Transnational Capital Corp.

#### **Opinion on the Financial Statement**

We have audited the accompanying statement of financial condition of Transnational Capital Corp. as of December 31, 2023, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Transnational Capital Corp. as of December 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

#### **Basis for Opinion**

This financial statement is the responsibility of Transnational Capital Corp.'s management. Our responsibility is to express an opinion on Transnational Capital Corp.'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 Transnational Capital Corp. 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 Transnational Capital Corp.'s auditor since 2017.

Maitland, Florida

February 10, 2024

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# **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023**

#### **ASSETS**

| Assets:                                       |    |           |
|-----------------------------------------------|----|-----------|
| Cash and cash equivalents<br>Prepaid Expenses |    | 28,049    |
|                                               |    | 2,873     |
|                                               | \$ | 30,922    |
|                                               |    |           |
|                                               |    |           |
|                                               |    |           |
| LIABILITIES AND STOCKHOLDER'S EQUITY          |    |           |
|                                               |    |           |
| Liabilities:                                  |    |           |
| Accounts payable and accrued liabilities      |    | 5,608     |
|                                               |    | 5,608     |
|                                               |    |           |
| Stockholder's equity:                         |    |           |
|                                               |    |           |
| Common stock, Class A                         |    |           |
| 200 shares authorized, issued and outstanding |    | 25,000    |
| Additional paid-in capital                    |    | 378,235   |
| Retained earnings (deficit)                   |    | (377,921) |
|                                               |    | 25,314    |
|                                               |    |           |
|                                               | \$ | 30,922    |

The accompanying notes are an integral part of these financial statements.

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# **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023**

# **Note 1- Summary of Significant Accounting Policies**

## Nature of Business

Transnational Capital Corp. ("the Company") is a broker-dealer, registered with the Securities Exchange Commission ("SEC"), and a member of the Financial Industry Regulatory Authority ("FINRA"). The Company was formed in February 2005 in the state of New York.

The Company specializes in securing financing and financial advisory services.

# Concentrations of Credit Risk for Cash

The Company's cash balances are maintained at one financial institution. Balances are insured by the Federal Deposit Insurance Corporation ("FDIC") subject to certain limitations.

# Cash and Cash Equivalents

For purposes of reporting the statement of cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash balances in excess of FDIC and similar insurance coverage are subject to the usual banking risks associated with funds in excess of those limits. At December 31, 2023, the Company had no uninsured cash balances.

# Significant Judgments

Revenue from contracts with customers includes fees from investment banking. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events.

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## **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023**

# **Note 1- Summary of Significant Accounting Policies (continued)**

### Revenue from Contracts with Customers

Revenues from contracts with customers are composed of investment banking fees. Such fees are recognized at the point in time when the Company's performance under the terms of the contractual agreement is completed, which is typically at the closing of the transaction. Reimbursed expenses related to these transactions are recorded as revenue and are included in investment banking fees. In certain instances, for advisory contracts, the Company will receive amounts in advance of the deals closing. In these instances, revenue is recognized over time in which the performance obligations are simultaneously provided by the Company and consumed by the customer. At December 31, 2023 there were no advances to the Company.

Other income is comprised of registered representative fees as required by the Company.

#### Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates.

#### Income Taxes

The Company has elected to be taxed as an \$-Corporation for Federal and state income tax purposes and, accordingly, no provision has been made for such income taxes. The stockholder's allocable share of the Company's income or loss is reportable in their income tax returns. Provisions are made for New York State S Corporation franchise tax and New York City general corporation tax, as applicable.

The Company has adopted the provisions of FASB Accounting Standards Codification 740-10, Accounting for Uncertainty in Income Taxes. Under 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. As tax position includes an entity's status, including its status as a pass-through entity, and the decision not to file a tax return. The Company has evaluated each of its tax positions and has determined that no provision or liability for income taxes is necessary. The shareholders and the Company are generally not subject to U.S. federal, state or local income tax examinations to the Company's activities for tax years before 2016.

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# **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023**

### **Note 2 - Net Capital Requirements**

The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule15c3-1), which requires the maintenance of minimum net capital at an amount equal to the greater of \$5,000 or 6 2/3% of aggregate indebtedness, and requires that the ratio of aggregate indebtedness to net capital not exceed 15 to 1.

At December 31, 2023, the Company had excess net capital of \$17,441 and a ratio of aggregate indebtedness to net capital of .2499 to 1.

# **Note 3 - Lease Commitment**

Lease expense for the year ended December 31, 2023 was \$1,719 and is recorded within Occupancy expenses on the Statement of Operations.

The Company leases space on a month to month basis at a variable monthly cost.

In February 2016 the FASB issued ASU 2016-02, Leases - (Topic 842). ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet to the rights and obligations created by lease agreements, including for those leases classified as operating leases under previous GAAP, along with the disclosure of key information about leasing arrangements. The Company has elected not to apply the recognition requirements of Topic 842 relating to its office lease and instead has elected to recognize the lease payments as lease cost on a straight line basis over the lease term. The lease cost is \$1,719 relating to the office lease for the year ended December 31, 2023.

# **Note 4 - Commitment and Contingencies**

The Company had no further commitments or contingencies as of December 31, 2023.

### **Note 5 - Subsequent Events**

In accordance with the Subsequent Events Topic of the FASB Accounting Standards Codification No. 855 ("FASB ASC 855"), the Company has evaluated those events and transactions that occurred from January 1, 2024 through February 10, 2024, the date the financial statements were available to be issued. No material events or transactions have occurred during this period which would render these financial statements to be misleading.

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# **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023**

# **Note 6- Going Concern**

As shown in the accompanying financial statements, the Company incurred a net loss from operations of \$4,012 during the year ended December 31, 2023, and as of that date, the Company has Stockholder's Equity of \$25,314 and has net capital of \$22,441. Those factors, as well as immediate preceding years' losses, create a substantial doubt about the Company's ability to continue as a going concern for the year following the date financial statements are available to be issued. Management for the Company has evaluated these conditions and has a plan to mitigate these conditions by obtaining a commitment from its sole owner to continue to provide cash contributions until such time as the Company becomes profitable. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.


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