# COBALT CAPITAL, INC. X-17A-5 (2025-04-15) — Broker-dealer annual report - Company: COBALT CAPITAL, INC. - Form: X-17A-5 - Filed: 2025-04-15 - Period: 2024-12-31 - Accession: 0001330760-25-000001 - CIK: 1330760 - File #: 8-66979 - Type: Broker-dealer - Material weakness: No - Auditor: RUBIO CPA, PC - Auditor location: ATLANTA, GA - Contact: BENJAMIN SCHICK - Phone: 407-649-3150 - Email: ben@cobaltcapitalinc.net - Website: cobaltcapitalinc.net - Signed by: BENJAMIN SCHICK (PRESIDENT) Original filing: https://www.sec.gov/Archives/edgar/data/1330760/000133076025000001/Public.pdf --- {0}------------------------------------------------ | | | | | | 0MB APPROVAL | | |---------------------------------------------------------------------------|--------------------------------------------------------------|-------------------------------------------------------------------------------|------------------------------------------------------------|---------|-----------------------------------------------------------------------------------------------------------|--| | PUBLIC | | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 | | | 0MB Number: 3235-0123
Expires: Oct. 31, 2026
Estimated average burden | | | | | | | | | | | | | | | | hours per response:
12 | | | | | ANNUAL REPORTS | | | SEC FILE NUMBER | | | | | FORM X-17A-5 | | | 8-66979 | | | | | PART Ill | | | | | | | | FACING PAGE | | | | | | | | | | | Information Required Pursuant to Rules 17a-5, 17a-12, and lSa-7 under the Securities Exchange Act of 1934 | | | | | | | | 12131124 | | | FILING FOR THE PERIOD BEGINNING 01 /01 /24 | | AND ENDING
MM/DD/YY | | | MM/DD/YY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | | | | | | NAME oF FIRM: Cobalt Capital, Inc. | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | | | | Iii Broker-dealer | □ Security-based swap dealer | | | | □ 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.) | | | | | | | | | 801 International Parkway, Ste 500 PMB 5242 | | | | | | | | | (No. and Street) | | | | | | | Lake Mary | | FL | | 32746 | | | | (City) | | (State) | | (Zip Code) | | | | | | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | | | | | | | | Benjamin Schick
(Name) | | 407-649-3150
(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, Suite 1500 Atlanta | | | GA | | | | (Address) | | (City) | | (State) | (Zip Code) | | | 05/05/09 | | | | 3514 | ben@cobaltcapitalinc.net
30326 | | | | | | | | (PCAOB Reg;m,uo, N,mbe,, ;f appU~bl•J I | | | | | | FOR OFFICIAL USE ONLY | | | | **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, Ben1amm 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 December 31 2 2024 , 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 . **.• ,;-;f.~~- MARIELY ACOSTA** *[l* **A''') MY COMMISSION#** HH 112342 **;.~~6·;ri EXPIRES; July 23, 2025 ·••,f olj\.0~•· Bonded 1lvu Notary PubHc llndefWl1tn** Signature: Title: President #### **This filing\*\* contains (check all applicable boxes):** - **iii!!** (a) Statement of financial condition. - **iii!!** (b) Notes to consolidated statement of financial 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 240.15c3-1 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. - 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-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. - **iii!!** (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. - **iii!!** (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. - D (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 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 opplicab/e. {2}------------------------------------------------ #### **COBALT CAPITAL, INC.** #### **REPORT PURSUANT TO RULE 17a-5(d}** **YEAR ENDED DECEMBER 31, 2024** The report is deemed **CONFIDENTIAL** in accordance with Ruic l 7a-5(c)(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}------------------------------------------------ **RUBIO CPA, PC** CERTIFIED PUBLIC ACCOUNTANTS 3500 Lenox Road NE Suite 1500 Atlanta, GA 30326 770-690-8995 ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Shareholder of Cobalt Capital, Inc. Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Cobalt Capital, Inc. (the "Company") as of December 31, 2024, and the related notes ( collectively referred to as the "financial statement"). In our opinion, the aforementioned financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting finn registered with the 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 PCAOR. 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial repo11ing 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 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 statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2023. Apri I 8, 2025 Atlanta, Georgia ![](_page_3_Picture_12.jpeg) {4}------------------------------------------------ #### **COBALT CAPITAL, INC.** #### **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024** #### **ASSETS** | Cash | \$
144,584 | |----------------------------------------------------------|---------------| | Accounts receivable | 12,714 | | Prepaid expenses and deposits | 31,703 | | Total assets | \$ | | LIABILITIES AND SHAREHOLDER'S EQUITY | | | LIABILITIES: | | | Accounts payable and accrued expenses | \$
7,104 | | Commissions payable | 9,104 | | Deferred revenue | 18,283 | | Total liabilities | 34,491 | | SHAREHOLDER'S EQUITY | | | Common stock, \$ I par value; I 0,000 shares authorized, | | | 200 shares issued and outstanding | 200 | | Additional paid-in-capital | 380,802 | | Retained earnings ( deficit) | (226,492) | | Total shareholder's equity | 154,510 | | Total liabilities and shareholder's equity | \$
1891001 | The accompanying notes arc an integral pa1t of this statement {5}------------------------------------------------ # **COL BAL T CAP IT AL, INC.** # **NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31, 2024** # **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 ("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 generally 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's credit worthiness, and cu1Tent economic trends. Based on management's review of accounts receivable, no allowance for credit losses is considered 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 lo 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. {6}------------------------------------------------ # **COLBAL T CAPlT AL, INC.** ## **NOTES TO FlNANCIAL ST A TEMENTS DECEMBER 31, 2024** ## **NOTE I: ORGANIZATlON AND SUMMARY OF SlGNlFICANT ACCOUNTING POLIClES (Continued)** #### **Advertising and Promotion** Advertising and promotion costs are expensed as incurred. The Company incurred \$13 ,4 l 0 m advertising and promotion expenses for the year ended December 31, 2024. #### **lncome taxes** 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 recognized as an S-Corporation by the Internal Revenue Service. The Company's shareholder is liable for any federal and state income taxes on the Company's taxable mcome. 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 has evaluated each of its tax positions and has determined that no provision or liability for uncertain tax positions is necessary. The Company is not subject to income tax return examinations by major taxing authorities for years before 202 l. ## **NOTE 2: NET CAPlTAL REQUIREMENTS** Pursuant to the net capital provisions of Rule l 5c3- l 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, 2024, the Company had net capital of \$1 I 9,197 which was \$114,197 in excess of its required net capital of \$5,000. The Company's net capital ratio (aggregate indebtedness to net capital) was 0.29 to 1.00. According to Rule 15c3-l, the Company's net capital ratio shall not exceed I 5 to I. ## **NOTE 3: CONTlNGENCIES** The Company is subject to litigation and arbitration in the normal course of business. The Company has one matter in progress at December 3 1, 2024. The matter in progress pertains to the Company's sale of at least \$210,000 in private investment products that the claimant alleges were unsuitable. The Company establishes accruals for legal actions when potential losses associated with the actions become probable and the costs can be reasonably estimated. For such accruals, the Company records the amount considered to be the best estimate within a range of potential losses that are both probable and estimable; however, if the Company cannot detem1ine a best estimate, then the low end of the range of those potential losses is recorded. The actual costs of resolving legal actions may be substantially higher than the amounts accrued for those actions. The Company is unable to reasonably estimate the possible loss that could be sustained from the claim made by the customer because of the unpredictability of the arbitration process and the lack of sufficient infom1ation regarding the merits of the claim. Consequently, no accrual for potential loss has been recorded in the financial statements. {7}------------------------------------------------ # **COLBAL T CAPITAL, INC.** #### **NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31, 2024** #### **NOTE 4: SUBSEQUENT EVENTS** The Company has perfonncd an evaluation of subsequent events through the date the financial statements were issued. #### **NOTE 5: LEASES** The Company leased office space under a non-cancelable operating lease that expired in September 2024. The Company's office space lease required 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). The total lease cost including variable costs associated with this lease was approximately \$31,409 for the year ended December 31, 2024. ## **NOTE 6: RETIREMENT PLANS** The Company adopted a cash balance retirement plan in January 2014 that was terminated during 2024. All benefits that had accrued under the Plan as of the termination date were fully vested and non-forfeitable. The assets of the Plan were distributed during 2024 in accordance with the provisions of the Plan as originally adopted. The Company has also adopted a 401K plan. No employer contributions were expensed by the Company related to this plan during the year ended December 31, 2024. ## **NOTE 7: CUSTOMER CONCENTRATIONS** During 2024, the Company had two customers that accounted for approximately 92% of commissions from private placements revenues. ## **NOTE 8: NET LOSS** The Company incurred a loss for 2024 and was dependent upon capital contributions from its shareholder for working capital and net capital. The Company's shareholder has represented that he intends to continue 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. {8}------------------------------------------------ # **COL BAL T CA PIT AL, INC.** ## **NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31, 2024 NOTE 9: RELATED PARTY TRASACTIONS** Commencing in October 2024, the Company operates from space provided by its President at no cost to the Company. The Company's shareholder at times pays for operating expenses on behalf of the Company for which it subsequently seeks reimbursement or forgives the amount to which it is entitled to be reimbursed. There was no balance due to the shareholder as of December 31, 2024, as a result of the shareholder's payment of such expenses. Financial position and results of operations could differ from the amounts in the accompanying financial statements if these related party transactions did not exist. ## **NOTE 10: SEGMENT REPORTING** The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including managing the distribution and marketing of real estate units of direct participation programs and operating as the managing broker-dealer which functions as the distributor or wholesaler brokerdealer that engages other broker-dealers to make its programs available for retail distribution. The Company has identified its President as the chief operating decision maker ("CODM"), who uses net income or loss to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 2), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay distributions. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.