# ANGEL ISLAND CAPITAL SERVICES, LLC X-17A-5 (2020-02-28) — Broker-dealer annual report - Company: ANGEL ISLAND CAPITAL SERVICES, LLC - Form: X-17A-5 - Filed: 2020-02-28 - Period: 2019-12-31 - Accession: 0001385971-20-000011 - CIK: 1600676 - File #: 8-69427 - Material weakness: No - Auditor: PricewaterhouseCoopers LLC - Auditor location: San Francisco, CA - Contact: Chad Kirschenblatt - Phone: 5169229111 - Website: pwc.com - Signed by: Marc Stoltz (FINOP) Original filing: https://www.sec.gov/Archives/edgar/data/1600676/000138597120000011/aicpublicreport19.pdf --- {0}------------------------------------------------ # ANGEL ISLAND CAPITAL SERVICES, LLC (A Limited Liability Company) # **STATEMENT OF FINANCIAL CONDITION** **DECEMBER** 31, **2019** {1}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL AUDITED REPORT FORM X-17A·5 PART Ill | OMB APPROVAL | |-----------------------------| | OMB Number:
. 3235-0123 | | August 31, 2020
Expires: | | Estimated average burden | | hours oar resoonse _ 12.00 | | SEC FILE NUMBER | |-----------------| | 8-69427 | FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | 01/01/2019 | | ~~~~~~~~~~ | |--------------------------------------------------------------------------------------------------------------------------------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | MMIDD!YY | | MM/DD/YY | | | | | | | | OFFICIAL USE ONL y
. . | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | FIRM l.D. NO. | | One Embarcadero Center, Suite 2110 | | | | (~o. and_ ~tr.e_ct)
CA | | | | (State) | | | | | | ·~16:222.9111 | | | | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBUC ACCOUNTANT whose opinion is contained in this Report*
(Name-ifindividual, state last, first. middle name) | | | | San Francisco | CA | 94111 | | (City) | (Stute) | (Zip Code) | | | | | | | | | | | | | | Accountant not re-sident in United States or any of its possessions. | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | AND ENDING 12/31/2019
A. REGISTRANT IDENTIFICATION
Angel Island Capital Services, LLC
94111
(Zip Code)
NAME AND TELEPHONE NUMBER OF PERSON TO.CONTACT IN REGARD TO THIS REPORT | *must be supported by a statement of/acts and circumstances relied on as the basis/or the exemption. See Section 240.17a-5(e)(2)* Potential persons who are to respond to.the collect.Ion. 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) {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | 1, | Marc Stoltz | | , swear (or affirm) that, to the best of | |------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | Angel Island Capital Services, LLC | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' as | | | | | are true and correct. I further swear (or affirm} that | | | classified solely as that of a customer, except as follows: | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | | | | | | | | | | | | | | | | | | | | | | | | CFO/FINOP
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(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.
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(h) Computation for Determination of Reserve Requirements Pursuant to Rule l 5c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3.
0 (m) A copy of the SlPC Supplemental Report. | KATHERINE HITE
No. 01 Hl6111616
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0 0) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule J 5c3-1 and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3.
O (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
O (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | | | | | | | | | **For conditions of confidential treatment of certain portions of this filing, see section 240. I 7a-5(e}(3). | {3}------------------------------------------------ # ANGEL ISLAND CAPITAL SERVICES, LLC (A Limited Liability Company) ### **DECEMBER 31, 2019** ## **TABLE OF CONTENTS** ## **Report of Independent Registered Public Accounting Firm** | Financial Statements: | Page | |----------------------------------------------------|------| | Statement of Financial Condition 1 | | | Notes to the Statement of Financial Condition 2-4 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** To the Board of Angel Island Capital Services, LLC and its Member: # **Opinion on** *the Financial Statement* **-** *Statement of Financial* **Condition** We have audited the accompanying statement of financial condition of Angel Island Capital Services, LLC (the "Company") as of December 31, 2019, including 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 the Company as of December 31, 2019 in conformity with accounting principles generally accepted in the United States of America. ### *Basis for* **Opinion** The 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 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 laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit of this financial statement 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. **February 26, 2020** We have served as the Company's auditor since 2016. *PricewaterhouseCoopers LLP, Three Embarcadero Center, San Francisco, CA 94111-4004* T: (415) 498 5000, F: (415) 498 7100, www.pwc.com/us {5}------------------------------------------------ # ANGEL ISLAND CAPITAL SERVICES, LLC (A Limited Liability Company) STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 #### ASSETS | Cash | | \$
1,929,822 | |---------------------------------------|--|-----------------| | Receivable from clearing organization | | 250,000 | | Prepaid expenses | | 7,573 | | Other assets | | 5,815 | | | | | | Total assets | | \$
2,193,210 | | | | | \$ 105,556 53,059 158,615 2,034,595 2,193,210 \$ ### LIABILITIES AND MEMBER'S EQUITY Liabilities: Accounts payable, accrued expenses and other liabilities Due to affiliate Total liabilities Member's equity Total liabilities and member's equity See notes to the statement of financial condition 1 {6}------------------------------------------------ # ANGEL ISLAND CAPITAL SERVICES, LLC (A Limited Liability Company) **NOTES TO THE STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019** #### **1. ORGANIZATION AND DESCRIPTION OF BUSINESS** Angel Island Capital Services, LLC (the "Company") is a wholly-owned subsidiary of Angel Island Operations Holdings, LLC (the "Parent"). The Company was organized on December 26, 2013 as a Delaware limited liability company. The Company is a registered brokerdealer, effective as of February 10, 2015 ("registration date"), with the U.S. Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934 and is a member of both the Financial Industry Regulatory Authority, Inc. ("FINRA") and the Securities Investors Protection Corporation ("SIPC"). The Company earns fees from investment banking transactions. The Company operates under the exemptive provisions of paragraph (k)(2)(ii) of Rule 15c3-3 of the Securities Exchange Act of 1934 which provides that the Company clears all customer transactions through another broker-dealer on a fully disclosed basis, and does not otherwise hold funds or securities for, or owe money or securities to customers. The Company did not maintain possession or control of any customer funds or securities for the year ended December 31, 2019. The accompanying financial statements have been prepared from the separate records maintained by the Company and, due to certain transactions and agreements with the Parent, such financial statements may not necessarily be indicative of the financial condition that would have existed or the results that would have been obtained from operations had the Company operated as an unaffiliated entity. #### **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** # *Basis of presentation* The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Further information over significant accounting policies are described in the following paragraphs. ### *Investment banking* Investment banking revenues include gains, losses, and fees, net of syndicate expenses, arising from securities offerings in which the Company acts as an underwriter or agent. Investment banking revenues also include fees earned from providing merger-acquisition and financial restructuring advisory services. Investment banking fees are recorded on offering date, sales concessions on settlement date, and underwriting fees at the time the underwriting is completed and the income is reasonably determinable. # *Concentration of risk* The Company maintains cash in a bank account which is non-interest bearing. Interest bearing and non-interest bearing accounts are insured by the FDIC up to \$250,000 per financial institution. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash. 2 {7}------------------------------------------------ # ANGEL ISLAND CAPITAL SERVICES, LLC (A Limited Liability Company) **NOTES TO THE STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019** ### 2. **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** *(continued)* # *Use of 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. ### *Income taxes* As a wholly-owned single member limited liability company, the Company is considered to be a disregarded entity and thus does not file income tax returns in any jurisdiction. The Company files under the Parent's consolidated tax return in which all items of income, expense, gains and losses are reportable by the Parent for tax purposes. The Company has no unrecognized tax benefits at December 31, 2019. For the year ended December 31, 2019, the Company paid \$560 in California state related taxes. The California state related taxes are franchise taxes paid by a limited liability company classified as a corporation that does business in California. ### *Uncertain tax positions* In accordance with the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification No. 740 ("ASC 740") Subtopic 05 "Accounting for Uncertainty in Income Taxes," the Company did not recognize any amounts from uncertain tax positions. The Company's conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations and interpretations thereof as well as other factors. Generally, Federal, state and local authorities may examine the Company's tax returns for three years from the date of filing. #### 3. **RELATED PARTY TRANSACTIONS** The Company has entered into an expense sharing agreement with Angel Island Capital Management, LLC ("AICM"). Pursuant to the agreement, the Company reimburses AICM for certain allocated salaries, rent, communication and other expenses paid for by AICM. These charges are assessed regularly and calculated based on percentages of personnel, square footage and other factors. For the year ended December 31, 2019, AICM charged the Company \$149,371 for such expenses, of which \$53,059 remains unpaid as of year-end. The Company has also entered into a services agreement with Golden Gate Private Equity, Inc. ("GGC") whereby GGC agreed to provide certain facilities, services and personnel to the Company; however, GGC receives no payments or reimbursements from the Company in connection therewith. {8}------------------------------------------------ # ANGEL ISLAND CAPITAL SERVICES, LLC **(A Limited** Liability Company) **NOTES TO THE STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019** ### **4. NET CAPITAL REQUIREMENTS** The Company is subject to the uniform net capital requirements of Rule 15c3-1 of the Securities Exchange Act, as amended, which requires the Company to maintain, at all times, sufficient liquid assets to cover indebtedness. In accordance with the Rule, the Company is required to maintain defined minimum net capital of the greater of \$100,000 or 6 2/3% of aggregate indebtedness. At December 31, 2019, the Company had net capital, as defined, of \$2,021,207, which exceeded the required minimum net capital of \$100,000 by \$1,921,207. Aggregate indebtedness at December 31, 2019 totaled \$142,016. The Company's percentage of aggregate indebtedness to net capital was 7.03%. ### 5. **SUBSEQUENT EVENTS** Management of the Company has evaluated events and transactions that have occurred since December 31, 2019, through the date of this report and determined that there are no material events that would require disclosures in the Company's financialstatements. 4 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.