# JSVC, LLC X-17A-5 (2021-11-22) — Broker-dealer annual report - Company: JSVC, LLC - Form: X-17A-5 - Filed: 2021-11-22 - Period: 2021-09-30 - Accession: 0001332469-21-000001 - CIK: 1332469 - File #: 8-67006 - Type: Broker-dealer - Material weakness: Yes - Auditor: DeMarco Sciaccotta Wilkens & Dunleavy, LLP - Auditor location: Frankfort, IL - Contact: Mark Mukai - Phone: 8089316464 - Signed by: Mark Mukai (President) Original filing: https://www.sec.gov/Archives/edgar/data/1332469/000133246921000001/JSVCAUDIT21LONG.pdf --- {0}------------------------------------------------ # FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PURSUANT TO RULE 17a-5 SEPTEMBER 30, 2021 {1}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per resoonse ...... 12.00 # **ANNUAL AUDITED REPORT FORM X·17A·5 PART Ill** SEC ALE NUMBER a-67006 FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | REPORT FOR THE PERIOD BEGINNING 10/01/20
AND ENDING 09/30/21 | | | | |---------------------------------------------------------------------------------------------------------|------------------------------------------------------|------------|---------------------------------| | | MM/DD/YY | | ·~----------------~
MM/DDIYY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: JSVC, LLC | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM 1.D. NO. | | 729 Elepaio St. | (No. and Street) | | | | Honolulu | HI | 96816 | | | (City) | (State) | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONT ACT IN REGARD TO THIS REPORT
Marl< Mukai
808-931-6464 | | | | | | | | (Area Code - Telephone Number) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report• | | | | | DeMarco Sciaccotta Wilkens & Dunleavy, LLP | | | | | | (Name - if indMdual. state last. first. middle name) | | | | 9645 Lincolnway Lane 214A | Frankfort | IL | 60423 | | (Address) | (City} | (State) | (Zip Code) | | CHECK ONE: | | | | | l/"lc
ertified Public Accountant | | | | | 0Public Accountant | | | | | Accountant not resident in United States or any of its possessions.
D | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | I | | | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240. /7a-5(e){2)* > Potential 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 valld OMB control number. SEC 141 O (11-05) {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | ---
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JSVC, LLC | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
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of September 30 | -
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are true and correct. I further swear (or affirm) that | | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | classified solely as that of a customer, except as follows: | | | | | | | Signature | | | | | | Au.dthl Title • ,,
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come (as defined in § | .1-02 of Regulation S-X). | | ~ (d) Statement of Changes in Financial Condition. | | | | 0 (e) Statement of Changes in Stockholders' Equity or Partners· or Sole Proprietors' Capital. | | | 0 (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | § (g) Computation of et Capital. | | | (h) Computation for Determination of Reserve Requirements Purs | uant to Rule I 5c3-3. | | | (i) Information Relating to the Possession or Control Requirements Under Rule I 5c3-3.
0 U) A Reconciliation, including appropriate explanation of the Computation of et Capital Under Rule I 5c3- | | | l and the
Computation for Determination ofthe Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | consolidation. | | | 0 (I) An Oath or Affirmation. | | | 0 (m) A copy of the SIPC Supplemental Report. | | | | 0 (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | *••For condilions of confidential treatment of certain portions of this filing, see section 2-10. I 7a-5(e)(3).* {3}------------------------------------------------ # CONTENTS # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FINANCIAL STATEMENTS STATEMENT OF FINANCIAL CONDITION STATEMENT OF OPERATIONS STATEMENT OF CHANGES IN MEMBER'S CAPITAL STATEMENT OF CASH FLOWS NOTES TO FINANCIAL STATEMENTS SUPPLEMENTAL INFORMATION SCHEDULE I - COMPUTATION OF NET CAPITAL AND AGGREGATE INDEBTEDNESS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM EXEMPTION REPORT {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Member of JSVC,LLC ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of JSVC, LLC (the "Company") as of September 30, 2021, and the related statements of operations, changes in member's capital and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of JSVC, LLC as of September 30, 2021, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. # Basis for Opinion These financial statements are the responsjbility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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 the Company in accordance with the U.S. federal securities faws 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 statements are 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 statements, 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. # Auditor's Report on Supplemental Information The information in Schedule I (the "supplemental information") 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 supplemental information 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 in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the supplemental information in Schedule I is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as JSVC, LLC's auditor since 2005. ~~t"'~~fb...ltdal Tinley Park, lllinois November 16, 2021 {5}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION ### SEPTEMBER 30, 202 1 #### ASSETS Cash \$ 7,162 MEMBER'S CAPITAL The accompanying notes are an integral part of these financial statements. MEMBER' S CAPITAL TOTAL CAPITAL \$ \$ 7,162 7,162 {6}------------------------------------------------ ### ST A TEMENT OF OPERATIONS #### YEAR ENDED SEPTEMBER 30, 2021 | EXPENSES | | |------------------------|---------------| | Miscellaneous expenses | 9,465
\$ | | Loss from Operations | (9,465)
\$ | | NET LOSS | (9,465)
\$ | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ ### STATEMENT OF CHANGES IN MEMBER'S CAPITAL ### YEAR ENDED SEPTEMBER 30, 2021 | Balance-Beginning of Year | \$
7,877 | |---------------------------|---------------| | Capital Contributions | 750
8
, | | Net Loss | (9,465) | | BALANCE-END OF YEAR | \$
7,162 | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ ### STATEMENT OF CASH FLOWS #### YEAR ENDED SEPTEMBER 30, 2021 | Cash Flows from Operating Activities | (9,465) | |--------------------------------------|-------------| | Net Loss | \$ | | Net Cash Flow Used by | (9,465) | | Operating Activities | \$ | | Net Cash Flow Used by | -0- | | Investing Activities | \$ | | Cash Flows from Financing Activities | 8,750 | | Capital Contributions | \$ | | Net Decrease in Cash | (715)
\$ | | Cash Balance at September 30, 2020 | 7,877
\$ | | Cash Balance at September 30, 2021 | 7,162
\$ | The accompanying notes are an integral part of these financial statements. {9}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS #### YEAR ENDED SEPTEMBER 30, 2021 #### NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization - JSVC, LLC (the "Company"), a limited liability company, was organized in the state of Delaware on October 24, 2003. The Company is registered as a broker/dealer with the Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority (FINRA). The Company's principal business activity is private placements. Basis of Presentation - The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Recognition of Revenue - The Company follows the revenue recognition guidance that requires an entity to follow a five step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies the performance obligation. Concentration of Risk - The Company's cash is on deposit at one financial institllltion and the balance at times may exceed the federally insured limit. Due to the strong credit rating of this financial institution, the Company believes it is not exposed to any significant credit risk to cash. Leases - The Company recognizes and measures its leases in accordance with FASB ASC 842, Leases. At September 30, 2021, the Company did not have any lease obligations. Estimates - The preparation of financial statements in conformity with GAAP 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. {10}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS #### YEAR ENDED SEPTEMBER 30, 2021 #### NOTE 2 - OPERATING AGREEMENT Various terms, such as restrictions on changes in membership interest, etc., are contained in the operating agreement. Currently, the managing member is the sole member of the Company. Therefore, any events initiated by the managing memlber should not be restricted by any terms contained in the operating agreement. However, those considering the purchase of membership interests in the Company should read the operating agreement prior to making such an investment. #### NOTE 3 - INCOME TAXES As a limited liability company with only one member, the Company has elected to file as a sole proprietorship for federal income tax purposes. Income taxes are therefore the responsibility of the sole member of the Company. The Company accounts for any potential interest or penalties related to possible future liabilities for unrecognized income tax benefits as interest/other expense. The Company is no longer subject to examination by tax authorities for federal, state or local income taxes for periods before 2017. #### NOTE 4 - NET CAP IT AL REQUIREMENTS As a registered broker/dealer and member of the Financial Industry Regulatory Authority, the Company is subject to the Uniform Net Capital Rule, which requires the maintenance of minimum net capital and requires that the ratio of aggregated indebtedness to net capital, both as defined, shall not exceed 1500%. At September 30, 2021, the Company's net capital and required net capital were \$7, 162 and \$5,000 respectively. The ratio of aggregate indebtedness to net capital was 0%. #### NOTE 5 - RELATED PARTIES The sole member has provided administrative assistance and other services to the Company without reimbursement. {11}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS #### YEAR ENDED SEPTEMBER 30, 2021 #### NOTE6-SUBSEQUENTEVENT The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the financial statements were issued, noting the following. The sole member contributed \$472 to the Company on October 6, 2021, to cover operating expenses .. {12}------------------------------------------------ # **SUPPLEMENTAL INFORMATION** *NOTE: The Company is exempt from the provisions of SEC Rule* J *5c3-3 as the Company is a non-covered .firm. Therefore, the Computation for Determination of the Reserve Requirements under Exhibit A of Rule 15c3-3 and the Information Relating to the Possession or Control Requirements under Rule J 5c3-3 have not been provided.* {13}------------------------------------------------ ### SCHEDULE I - COMPUTATION OF NET CAPITAL AND AGGREGATE INDEBTEDNESS ### SEPTEMBER 30, 2021 | COMPUTATION OF NET CAPITAL
Total member's capital
Deductions: | \$
162
7
,
-0- | |-----------------------------------------------------------------------------------------------------------------------------|----------------------------| | NET CAPITAL | \$
162
7
, | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT
Minimum net capital requirement (6 2/3%
of total aggregate indebtedness) | \$
-0- | | Minimum dollar net capital requirement | \$
000
5
, | | Net capital requirement | \$
000
5
, | | COMPUTATION OF AGGREGAT.E INDEBTEDNESS
Total liabilities | \$
-0- | | Percentage of Aggregate Indebtedness to
Net Capital | 0% | NOTE : There are no material differences between the computations above and the computations included in the Company's corresponding unaudited Form X-17A-5 Part IIA filing . See accompanying Report of Independent Registered Public Accounting Firm. {14}------------------------------------------------ ![](_page_14_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Member of JSVC, LLC We have reviewed management's statements, included in the accompanying exemption report, in which (1) JSVC, LLC claimed it may file an exemption report because it had no obligation under I 7 C.F.R. section 240. I 5c3-3 and (2) JSVC, LLC, as a non-covered firm, met the provisions of footnote 74 of the Securities and Exchange Cornmision release No. 34-70073 throughout the most recent fiscal year ended September 30, 2021 without exception. JSVC, LLC's management is responsible for compliance with the exemption provisions andl 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 ev idence about JSVC, LLC's compliance with the exemption provisions for a non-covered firm. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth by the Securities and Exchange Commission. },e~tu~ ~!L..ltd al Tinley Park, Illinois November 16, 2021 {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) # EXEMPTION **REPORT** SEC Rule 17a-5(d)(4) November 16, 2021 JSVC, LLC ("Company") is a registered broker-dealer subject to Rule l 7a-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 by17 C.F.R. §240.17a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: 1. The Company may file an exemption report because the Company had no obligations under 17 C.F.R. §240. l 5c3-3 throughout the most recent fiscal year. 2. The Company, as a non-covered firm, met the provisions of footnote 74 of the Securities and Exchange Commission Release No. 34-70073 as it activities are limited to private placement services and (1) 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 l 5c2-4; (2) did not carry accounts of or for customers; and (3) did not carry P AB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year. The above statements are true and correct to the best of my and the Firm's knowledge. Signature: j&~~illl.mJ~r~2t **..** ~,,J"'~~·~J,~~·~---- Name and Title: Mark Mukai/President Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.