# COBALT CAPITAL, INC. X-17A-5 (2023-04-14) — Broker-dealer annual report - Company: COBALT CAPITAL, INC. - Form: X-17A-5 - Filed: 2023-04-14 - Period: 2022-12-31 - Accession: 0001330760-23-000004 - CIK: 1330760 - File #: 8-66979 - Type: Broker-dealer - Material weakness: No - Auditor: Rubio CPA PC - Auditor location: Atlanta, GA - Contact: Pamela Ohab - Phone: 407-740-7311 - Email: pam@ohabco.com - Website: ohabco.com - Signed by: Benjamin Schick (President) Original filing: https://www.sec.gov/Archives/edgar/data/1330760/000133076023000004/cobaltconfidential.pdf --- {0}------------------------------------------------ CONFIDENTIAL TREATMENT REQUESTED **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORTS FORM X-17A-S PART Ill FACING PAGE** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-66979 **Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING **0 1/01 /22** MM/DD/VY AND ENDING **12/31 /22** MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME oF FIRM: Cobalt Capital Inc TYPE OF REGISTRANT (check all applicable boxes): iii Broker-dealer D Security-based swap dealer 0 Major security-based swap participant □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 250 International Parkway, Ste 270 (No. and Street) Lake Mary FL (City) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 32746 (Zip Code) Pam Ohab 407-740-7311 pam@ohabco.com (Name) (Area Code -Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Rubio CPA PC (Name - if individual, state last, first, and middle name) 3500 Lenox Road NE, Ste 1500 Atlanta GA 30326 (Address) (City) (State) (Zip Code) May 5 2009 3514 **l" of RegisHatioo with PCAOB)(if applicable) FOR OFFICIAL USE ONLY (PCAOB Reg;stcatioo Norn bee,** if **applicable)** I \* 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-5(e)(l)(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.** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** I, Benjamin Schick , swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Cobalt Capital Inc as of April 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. ,i!!'>'·~~... **MARIELY ACOSTA** [.( ~\i **MY COMMISSION#** HH **112342** *'~~~i:'* **EXPIRES:** July **23, 2025** ·•,f.~r,~\\••• **Bonded lhtu Nolaly Public \Jndenmlar&** Signatur~ - *A* **vi** ( Title: President #### **This filing\*\* contains (check all applicable boxes):** - ~ (a) Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - ~ (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) Statement of cash flows. - ~ (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. - ~ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) 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. - ~ (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. - ~ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 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. - ~ (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. - ~ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (t) Independent public accountant's report based on an examination of the statement of financial condition. - ~ (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.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.l 7a-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.l 7a-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 applicable.* {2}------------------------------------------------ #### **REPORT PURSUANT TO RULE 17a-5{d)** **YEAR ENDED DECEMBER 31. 2022** The report is deemed **CONFIDENTIAL** in accordance with Rule 17a-5( e )(3) under the Securities Exchange Act of 1934. A statement of financial condition has been filed with the Securities and Exchange Commission simultaneously herewith as a **PUBLIC DOCUMENT.** {3}------------------------------------------------ # **CONTENTS** | | Page(s) | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------| | Report of Independent Registered Public Accounting Firm | 3-4 | | Statement of Financial Condition | 5 | | Statement of Operations | 6 | | Statement of Changes in Shareholder's Equity | 7 | | Statement of Cash Flows | 8 | | Notes to Financial Statements | 9-13 | | Supplementary Schedules: | | | Schedule I: Computation of Net Capital Pursuant to Uniform
Net Capital Rule 15c3-1 | 14 | | Schedule II: Computation for Determination of Reserve Requirements Under
Rule 15c3-3 of the Securities and Exchange Commission as of December 31, 2022 | 15 | | Schedule III: Information Relating to the Possession or Control Requirements Under
Rule 15c3-3 of the Securities and Exchange Commission as of December 31, 2022 | 16 | | Report of Independent Registered Public Accounting Firm on the company's
Exemption Report including management's statement | 17-18 | {4}------------------------------------------------ **RUBIO CPA, PC** CERTIFIED PUBLIC ACCOUNTANTS 3500 Lenox Road NE Suite 1500 Atlanta , GA 30326 Office: 770 690 -8995 Fax: 770 838- 7123 # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Shareholder of Cobalt Capital. Inc. Qpinion on the Financial Statements We ha\e <1uclitcd the accompan) ing statement of financial condition of Cobalt Capital, lnc. (the "Company") as of December 3 I. 2022, the related statements of operations. changes in shareholder's equity, and cash flows for the year then ended and the related notes (collectively referred to as the "financial statements''). In om opinion, the financial -,tatement.\_ present fairly, in all material respects, the financial position of the Company as of December 31. 2022, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles general I) accepted in the United States of America. ## Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibilit) is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with tht> 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 PCAOI3. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were \\C engaged to pcrfonn, an audit of its internal control over financial reporting. As part of our audit, we arc required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement to the financial statements, whetht:r due to error or fraud, and performing procedures that respond to those ri~ks. Such procedures included examining, on a te<;t basi~, 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 lJf the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### Supplemental Information fhc info1111ation contained in Schedules I, II and llf has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the information in Schedules I, II and Ill reconciles to the financial statements or the underlying accounting and other records. as applicable, and performing procedures to test the completeness and accuracy of the information presented 111 the accompanying schedules. In forming our opinion on the accompanying schedules, we evaluated whether the supplemental information, including its fonn and content, is presented {5}------------------------------------------------ in conformity with 17 C.f-.R. §240. l 7a-5. In our opinion. the aforementioned supplemental information i,; fairly ~lated. in all material respects, in relation to the financial statements as a whole. We have served a~ the Company's auditor since 2023. April 14, 2023 Atlanta, Georgia ![](_page_5_Picture_3.jpeg) {6}------------------------------------------------ ## **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2022** ## **ASSETS** | Total liabilities and shareholder's equity | \$
327~435 | |----------------------------------------------------------|---------------| | Total shareholder's equity | 135,231 | | Retained earnings | 146,079 | | Accumulated other comprehensive loss | (43,800) | | Additional paid-in-capital | 32,752 | | 200 shares issued and outstanding | 200 | | Common stock, \$1 par value; 10,000 shares authorized, | | | SHAREHOLDER'S EQUITY | | | Total liabilities | 192,204 | | Lease liability | 67,800 | | Deferred revenue | 13,948 | | Accrued compensation | 24,271 | | Commissions payable | 22,624 | | Present value of vested benefits in retirement plan, net | 43,800 | | Accounts payable and accrued expenses | \$
19,761 | | LIABILITIES: | | | LIABILITIES AND SHAREHOLDER'S EQUITY | | | Total assets | \$
327~435 | | Prepaid expenses and deposits | 37,275 | | Right of use asset | 67,800 | | Accounts Receivable | 40,924 | | Cash | \$
181,436 | The accompanying notes are an integral part of this statement. {7}------------------------------------------------ #### **STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2022** | Revenue | | |--------------------------------------------------------------------------|-----------------| | Commissions from private placements | \$
2,503,095 | | Service fees | 195,919 | | Fees from registered representatives | 7,841 | | Interest | 1,110 | | Reimbursed expenses | 11,885 | | Other | 40,872 | | Total Revenue | 2,760,722 | | Expenses | | | Commissions, compensation and benefits | 2,722,396 | | Advertising and promotion | 27,263 | | Technology and communications | 115,986 | | Occupancy | 42,068 | | Other | 266,437 | | Total Expenses | 3,174,150 | | Net Loss | \$
(413,428) | | Other Comprehensive Loss: | | | Increase in present value of vested benefits over retirement plan assets | (87,896) | | Comprehensive Loss | \$
(501,324) | The accompanying notes arc an integral part of this statement. {8}------------------------------------------------ #### STATEMENT OF CHANGES IN SHAREHOLDER'S EQUrfY YEAR ENDED DECEMBER 31, 2022 | | | Common
Stock
Amount | | Additional
Paid-In
Caeital | | Accumulated
Other
Comprehensive
Income (Loss) | | Retained
Earnings | Total | |-------------------------------------------------------------------------------------------------------------------------|---|---------------------------|----|----------------------------------|----|--------------------------------------------------------|----|----------------------|----------------| | Balances, December 31, 2021, as previously reported | s | 200 | s | 32,752 | s | | s | 615,507 | \$ 648,459 | | Adjustment lo record fair value of reliremenl plan assels
over presenl value of vested benefils at beginning of year | | | | | | 44,096 | | | 44,096 | | Adjustment to record accrued retirement plan
contribulions at beginning of year | | | | | | | | (56,000) | (56,000) | | Balances, December 31, 2021, as adjusted | | 200 | | 32,752 | | 44,096 | | 559,507 | 636,555 | | Nel loss | | | | | | | | (413,428) | (41'.l,428) | | Increase in present value of vested benefils
over retirement plan assets | | | | | | (87,896) | | | (87,896) | | Balances, December 31, 2022 | | 200 | \$ | 321
752 | \$ | (431
800) | \$ | 1461
079 | \$ 1351
231 | The accompanying nolcs arc an inlcgral pan of I his sra1cmen1. 7 {9}------------------------------------------------ #### **STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2022** #### **CASH FLOWS FROM OPERATING ACTIVITIES:** | Net loss | \$ (413,428) | |-------------------------------------------------------------------------------------------|---------------| | Items which do not impact cash: | | | Adjustment to beginning retained earnings to record accrued retirement plan contributions | (56,000) | | Adjustments to reconcile net loss to net cash used by operating activities: | | | Decrease in right of use asset | 35,166 | | Decrease in accounts receivable | 27,803 | | Imcrease in prepaid expenses and deposits | (1,513) | | Decrease in accounts payable and accrued expenses | (7,252) | | Increase in commissions payable | 22,624 | | Increase in accrued compensation | 24,271 | | Increase in deferred revenue | 13,948 | | Decrease in lease liability | (35,166) | | Net cash used by operating activities | (389,547) | | NET DECREASE IN CASH | (389,547) | | CASH, beginning of year | 570,983 | | CASH, end of year | 181,436
\$ | The accompanying notes are an integral part of this statement. 8 {10}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** # **Organization and Business** Cobalt Capital, Inc. (the "Company") is a Florida corporation incorporated on March 18, 2005. The Company operates as a limited broker-dealer managing the distribution and marketing of real estate units of direct participation programs. The Company also operates as the managing broker-dealer which functions as the "distributor" or "wholesaler" broker-dealer and engages other broker-dealers to make its programs available for retail distribution. The Company is registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority, Inc. **("FINRA").** # **Revenue Recognition** Revenue from contracts with customers includes commissions from private placements and service fees. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations 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 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. The Company recognizes commissions from private placements upon the sale of each interest in an offering as this satisfies the only performance obligation identified by the company. The Company provides services to certain issuers during the course of private placement offerings pursuant to services agreements for which the Company receives fees. These services can include back-office support, customer due diligence and other compliance related services. The Company recognizes such service fees over time as the related performance obligations are simultaneously provided to and consumed by the customer. # **Accounts Receivable** Accounts receivable are non-interest bearing uncollateralized obligations receivable in accordance with the terms agreed upon with each customer. The Company regularly reviews its accounts receivable for any uncollectible amounts. The review for uncollectible amounts is based on an analysis of the Company's collection experience, customer credit worthiness, and current economic trends. Based on management's review of accounts receivable, no allowance for credit losses is considered to be necessary. The Company maintains its bank accounts in high credit quality financial institutions. At times, balances may exceed federally insured limits. ## **Estimates** The preparation of financial statements in conformity 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 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. {11}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022** # **NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** # **Advertising and Promotion** Advertising and promotion costs are expensed as incurred. The Company incurred \$27,263 in advertising and promotion expenses for the year ended December 31, 2022. ## **Income taxes** The Company is recognized as an S-Corporation by the Internal Revenue Service. The Company's shareholder is liable for federal and state income taxes on the Company's taxable income. The Company is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. The Company files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states. The Company is not subject to income tax return examinations by major taxing authorities for years before 2019. The Company did not have unrecognized tax benefits as of December 31, 2022, and does not expect this to change significantly over the next twelve months. The Company will recognize interest and penalties accrued on unrecognized tax benefits as a component of income tax expense. As of December 31 , 2022, the company had no accrued interest or penalties related to uncertain tax positions. # **NOTE 2: NET CAPITAL REQUIREMENTS** Pursuant to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, the Company is required to maintain a minimum net capital, as defined under such provisions. At December 31, 2022, the Company had net capital of \$79,647, which was \$71,353 in excess of its required net capital of \$8,294. The Company's net capital ratio (aggregate indebtedness to net capital) was 1.56 to 1.00. According to Rule 15c3-1, the Company's net capital ratio shall not exceed 15 to 1. # **NOTE 3: LEASES** The Company determines if an arrangement is a lease at inception of the contract. Lease assets are included in right-of-use ("ROU") assets while the corresponding lease liabilities are included in lease liabilities in the statement of financial condition. A ROU asset represents the Company's right to use an underlying asset for the lease term while the related lease liability represents obligations to make future lease payments arising from the lease. A ROU asset and related lease liability are recognized at the lease commencement date, based on the present value of lease payments over the lease term. The Company uses an incremental borrowing rate based upon what it would approximately 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 remeasured lease liability (present value of the remaining lease payments), less the unamortized balance of lease incentives received. Lease expense is recognized on a straightline basis over the lease term. {12}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022** # **NOTE 3: LEASES (Continued)** The Company leases office space under a non-cancelable operating lease expiring in September 2024. Maturity of the lease liability under the non-cancelable operating lease is as follows: | Year | Amount | | | |-----------------------|--------------|--|--| | 2023 | \$
39,807 | | | | 2024 | 30,523 | | | | Total | 70,330 | | | | Less imputed interest | {2,530~ | | | | Total lease liability | \$
67,800 | | | The Company's office space lease requires it to make variable payments for the Company's proportionate share of operating expenses (i.e., building's property taxes, insurance, and common area maintenance). These variable lease payments are not included in lease payments used to determine the lease liability and are thus recognized as variable costs when incurred. The total lease cost including variable costs associated with this lease was approximately \$42,068 for the year ended December 31, 2022. # **NOTE 4: CONTINGENCIES** The Company is subject to litigation in the normal course of business. The Company has no litigation in progress at December 31, 2022. # **NOTE 5: SUBSEQUENT EVENTS** The Company has performed an evaluation of subsequent events through the date the financial statements were issued. ## **NOTE 6: RETIREMENT PLANS** The Company has a cash balance retirement plan which was adopted in January 2014. The gain or loss pertaining to the change in the fair value of plan assets and present value of vested benefits is reflected in other comprehensive income or loss within the accompanying statement of operations. The plan's funded status at December 31, 2022, is as follows: | Assets al fair value | \$492,121 | |----------------------------|-----------| | Benefit obligation lo fund | 43,800 | | Vested benefit | \$535,921 | {13}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022** ## **NOTE 6: RETIREMENT PLANS (Continued)** The fair value of plan assets includes \$56,000 of employer contributions to the cash balance retirement plan in 2022. The unit credit funding method was used as prescribed by the Pension Protection Act. This method sets the funding target equal to the present value of accrued benefits and sets the normal cost equal to the present value of the benefit accrued in the current year. The cash balance projected interest crediting rate is 3%. The plan does not expect to pay any benefits during the next five fiscal years. The Company has also adopted a 401K plan. The employer contribution expense related to the 401K plan for 2022 was \$14,721 which has been included in commissions, compensation and benefits in the accompanying statement of operations. # **NOTE** 7: **FAIR VALUE** FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is 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. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1: quoted prices in active markets for identical assets or liabilities the Company has the ability to access at the measurement date. Level 2: inputs (other than quoted prices) that are observable for the asset or liability either directly or indirectly. Level 3: unobservable inputs for the asset or liability developed using estimates and assumptions which reflect those that market participants would use. (The unobservable inputs are developed based on the best information available in the circumstances and may include the Company's own data.) The following table presents the Company's fair value hierarchy for the retirement plan assets measured at fair value as of December 31, 2022. | | | Fair Value | | | | | | | |-------------------------------|--------------|------------|-----------|---------|-----------|----------|-----------|--| | | Measurements | | Level 1 | | Level 2 | | Level 3 | | | | | 12/31/2022 | Valuation | | Valuation | | Valuation | | | Cash | \$ | 10,831 | \$ | 10,831 | \$ | | \$ | | | Common stock, publicly traded | | 185,766 | | 185,766 | | | | | | Exchange traded funds | | 288,188 | | 288,188 | | | | | | Mutual funds, equities | | 7,336 | | | | 7,336 | | | | | \$ | 492,121 | \$ | 484,785 | | \$ 7,336 | \$ | | {14}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022** # **NOTE 8: CUSTOMER CONCENTRATIONS** During 2022, the Company had one customer that accounted for approximately 91 % of commissions from private placements revenues. Approximately 98% of accounts receivable at December 31, 2022 are due from four customers. # **NOTE 9: NET LOSS** The Company has incurred a loss for 2022. The Company's shareholder has represented that it intends to make capital contributions as needed to ensure the Company's survival through at least one year from the date of the report of the independent registered public accounting firm. Management expects the Company to continue as a going concern and the accompanying financial statements have been prepared on a going-concern basis without adjustments for realization in the event that the Company ceases to continue as a going concern. {15}------------------------------------------------ # **COBALT CAPITAL, INC. SCHEDULE** I **COMPUTATION OF NET CAPITAL PURSUANT TO UNIFORM NET CAPITAL RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2022** ## **NET CAPITAL** | Shareholder's equity | \$
135,231 | |--------------------------------------------------------------------------------------------|---------------| | Non-allowable assets | | | Accounts receivable, net | 18,309 | | Prepaid expenses and deposits | 37,275 | | Total non-allowable assets | 55,584 | | NET CAPITAL | 79,647 | | Minimum requirement (6-2/3% of aggregate indebtedness
or \$5,000, whichever is greater) | 8,294 | | Excess net capital | 71,353 | | AGGREGATE INDEBTEDNESS: | \$
124,404 | | RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL | 1.56 to 1 | Reconciliation with the Company's computation of net capital included in Part IIA of Form X-17 A-5 as of December 31 There arc no material differences between the above computation of net capital and the corresponding unaudited Part IIA of Form X-l 7A-5 , as amended, as of December 31, 2022. {16}------------------------------------------------ #### Schedule II ## COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER SEC RULE 15c3-3 AS OF DECEMBER 31, 2022 The Company is not claiming an exemption from Rule 15c3-3 in reliance on Footnote 74 of SEC Release 34-70073 dated July 30, 2013 and as discussed in Q&A 8 of the related FAQ issued by SEC staff on April 4, 2014. The Company does not hold customer funds or securities. {17}------------------------------------------------ #### Schedule Ill ### INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER SEC RULE 15c3-3 AS OF DECEMBER 31, 2022 The Company is not claiming an exemption from Rule 15c3-3 in reliance on Footnote 74 of SEC Release 34-70073 dated July 30, 2013 and as discussed in Q&A 8 of the related FAQ issued by SEC staff on April 4, 2014. The Company does not hold customer funds or securities. {18}------------------------------------------------ **RUBIO CPA, PC** CERTIFIED PUBLIC ACCOUNTANTS 3500 Lenox Road NE Suite 1500 Atlanta, GA 30326 Office: 770 690-8995 Fax: 770 838-7123 ## **REPORT OF INDEPENDENT REGISTERIU) PUBLIC ACCOUNTING FIR'\tl** To the Shareholder of Cobalt Capital, Inc. We have reviewed management's statements included in the accompanying Broker Dealers Annual E:-..cmplion Report in which ( 1) Cobalt Capital, Inc. did not claim an exemption from Rule I 5c3-3 in reliance upon Footnote 74 of the 2013 Release, and (2) Cobalt Capital, Inc. stated that Cobalt Capital. Inc. met the identified condition<; for such reliance throughout the most recent fiscal year without exception. Cobalt Capital, lnc.'s management is rci,pon:,ible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and. accordingly, included inquiries and other required procedures to obtain evidence about Cobalt Capital. lnc:s compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion 011 management's statements. Accordingly, we do not express such an opinion. Ba!>cd on our rev ic,,, we are not aware of atn material nwclifications that ~hould be made to management's statements referred to above for them to be fairly stated," in all material respect!>. based on the pro, isions set forth in Footnote 74 of the 2013 Release. April 14, 2023 .-\tlanta, GA {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) ## **Exemption Report** **Cobalt Capital, Inc.** (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, ''Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240. **l** 7a-5(d)(I) and (4). To the best of its knowledge and belief, the Company states the following: - (I) The Company does not claim an exemption under paragraph (k) of 17 C.F .R. § 240. 15c3-3, and - (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240. l 7a-5 because the Company limits its business activities exclusively to Investment Advisory Services, and the Company (I) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b )(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. ## **Cobalt Capital, Inc.** I, Benjamin Schick swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. By~.PI Title~esident **February 20, 2023** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.