# CORPORATE FUEL SECURITIES LLC X-17A-5 (2021-03-18) — Broker-dealer annual report - Company: CORPORATE FUEL SECURITIES LLC - Form: X-17A-5 - Filed: 2021-03-18 - Period: 2020-12-31 - Accession: 0001347369-21-000002 - CIK: 1347369 - File #: 8-67189 - Material weakness: No - Auditor: Marks Paneth LLP - Auditor location: Woodbury, NY - Contact: John J. Bolebruch - Phone: 6465720428 - Signed by: John J. Bolebruch (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1347369/000134736921000002/AnnualReportFYE12.31.2020P.pdf --- {0}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III | OMB Number: | 3235-0123 | |---------------------------|---------------------------| | Expires: October 31, 2023 | | | Estimated average burden | | | | hours per response 12.00 | | | | OMB APPROVAL | SEC FILE NUMBER | |-----------------| | 8-67189 | FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | | AND ENDING 12/31/20
REPORT FOR THE PERIOD BEGINNING 01/01/20 | | | | |----------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-------------------|--------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Corporate Fuel Securities, LLC | | OFFICIAL USE ONLY | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | | 10 East 40th Street, Suite 3210 | | | | | | | (No. and Street) | | | | | New York | NY | | 10016 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
John J. Bolebruch | | | (646) 572-0428 | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | Marks Paneth LLP | | | | | | | (Name - if individual, state last, first, middle name) | | | | | 685 Third Avenue | New York | NY | 10017 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | Certified Public Accountant
Public Accountant | Accountant not resident in United States or any of its possessions. | | | | | | FOR OFF CIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | \* 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 240.17a-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 valid OMB control number. SEC 1410 (11-05) {1}------------------------------------------------ ## OATH OR AFFIRMATION | VALLI VIS ALLARIALIVI | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | T John J. Bolebruch
, swear (or affirm) that, to the best of | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
Corporate Fuel Securities, LLC | | of December 31
2020 , are true and correct. I further swear (or affirm) that | | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | classified solely as that of a customer, except as follows: | | | | | | | | | | | | Pierina MacChia | | Notary Public State of New York
Signature | | No. 01416369704
Qualified in Wastchaster County | | Commission Expires 01/16/2022 | | Title | | | | Notary Public | | | | This report ** contains (check all applicable boxes): | | (a) Facing Page. | | (b) 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 Changes in Financial Condition. | | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | (g) Computation of Net Capital. | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | (i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of | | consolidation. | | (1) An Oath or Affirmation. | | (m) A copy of the SIPC Supplemental Report. | | (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous andit. | | | \*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). {2}------------------------------------------------ ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member of Corporate Fuel Securities, LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Corporate Fuel Securities, LLC (the "Company") as of December 31, 2020, 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 Corporate Fuel Securities, LLC as of December 31, 2020 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This financial statement is the responsibility of Corporate Fuel Securities, LLC's management. Our responsibility is to express an opinion on the Company'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 Corporate Fuel Securities, LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial 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 independent auditor since 2007. New York, New York March 17, 2021 ![](_page_2_Picture_12.jpeg) {3}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 {4}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION ## DECEMBER 31, 2020 #### ASSETS | Cash
Accounts receivable
Due from parent
Other assets | \$
66,331
68,589
10,396
1,645 | |----------------------------------------------------------------|-------------------------------------------| | TOTAL ASSETS | \$
146,961 | | | | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES
Accrued expenses and other liabilities | \$
47,565 | | MEMBER'S EQUITY | 99,396 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
146,961 | See notes to financial statement. {5}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENT #### DECEMBER 31, 2020 ### 1. DESCRIPTION OF ORGANIZATION AND NATURE OF BUSINESS Corporate Fuel Securities, LLC (the "Company"), (A Wholly-Owned Subsidiary of Corporate Fuel Advisors, LLC), is a New York Limited Liability Company formed on November 9, 2005, and commenced operations in July 2006. The Company is a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company provides private placements of debt and equity securities and advisory services to other companies and does not hold customer funds or securities. #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Revenue Recognition Revenue from contracts with customers includes fees from investment banking services. 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 the appropriate measure of the Company's progress under the contract; and whether constraints on variable . consideration should be applied due to uncertain future events. M & A advisory fees- The Company provides advisory services on mergers and acquisitions (M&A). Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. At December 31, 2020, all amounts were immaterial. During the year ended December 31, 2020, the Company recognized \$27,487 in revenues earned at a point in time and \$427,500 in revenues earned over time. #### Use of Estimates …. 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 certain reported amounts and disclosures in the financial statements. Actual results could differ from these estimates. {6}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENT ## DECEMBER 31, 2020 #### Allowance for Credit Losses Effective January 1, 2020, the Company adopted ASC Topic 326, Financial Instruments – Credit Losses ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of a financial asset. Under the accounting update, the Company has the ability to determine there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the client). The Company identified advisory fees and accounts receivables as impacted by the new guidance. ASC 326 specifies that the Company adopt the new guidance prospectively by means of a cumulative-effect adjustment to the opening member's equity as of the December 31, 2019. Accordingly, the Company recognized no adjustment upon adoption. The Company's conclusion that an allowance for credit losses was not required is based on the Company's expectation of the collectability of the accounts receivable utilizing the CECL framework, The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company's expectation is that the credit risk associated with fees is not significant based on its contractual arrangements and expectation of collection in accordance with industry standards, #### Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. An account at an institution is insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. At December 31, 2020, the Company had \$0 in excess of the FDIC insured limit. No losses incurred to date. ## Income Taxes The Company is not subject to federal, state, or local income taxes. The profit or loss of the Company passes directly to the member for income tax purposes. The Company follows Financial Accounting Standards Board Accounting Standards Codification 740, Income Taxes for establishing and classifying any tax provisions for uncertain tax positions and recognizing any interest and penalties. The Company is no longer subject to tax examinations by the federal, state and local taxing authorities for years before 2017. {7}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENT #### DECEMBER 31, 2020 #### Subsequent Events Management has evaluated, for potential financial statement recognition and/or disclosure, events subsequent to the date of the statement of financial condition through March 17, 2021, which is the date that the financial statement was available to be issued. #### 3. RELATED PARTY TRANSACTIONS Corporate Fuel Advisors, LLC (the "Parent Company") and the Company may enter into joint arrangements with clients who require both financial advisory and private placement services. Each company recognizes revenue based on specific services provided to a client in accordance with the contractual terms of the agreements. During the year ended December 31, 2020 the Company earned \$249,895 in financial advisory fees through joint agreements with the Parent Company. The Parent Company has agreed to pay for expenses incurred that are attributable to the Company for shared employees, office space and overhead. Such expenses are allocated on a reasonable basis, based on time spent, which the Company records monthly as a contribution to capital. These amounts totaled \$218,897 for the year ended December 31, 2020. There is an amount due to parent of \$2,500 that is included in accrued expenses and other liabilities at December 31, 2020. #### 4. NET CAPITAL AND RESERVE REQUIREMENTS The Company is subject to the U.S. Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2020, the Company's net capital of \$18,766 exceeded required net capital of \$5,000 by \$13,766 and the ratio of aggregate indebtedness to net capital was 2.53 to 1. The Company is exempt under Section (k)(2)(i) of Rule 15c3-3. As such, the Company is not required to segregate funds in a special reserve account for the exclusive benefit of customers. The Company's business activities contemplated by Footnote 74 of the SEC Release No. 34- 70073 adopting amendments to 17 C.F.R.§240. 17a-5 are limited to (1) receiving transactionbased compensation for identifying potential merger and acquisition opportunities for clients. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.