# SPOKE REAL ESTATE FINANCIAL, LLC X-17A-5 (2022-02-25) — Broker-dealer annual report - Company: SPOKE REAL ESTATE FINANCIAL, LLC - Form: X-17A-5 - Filed: 2022-02-25 - Period: 2021-12-31 - Accession: 0001385971-22-000003 - CIK: 1783311 - File #: 8-70381 - Type: Broker-dealer - Material weakness: No - Auditor: Raines & Fischer LLP - Auditor location: New York, NY - Contact: Michael Levin - Phone: 614 296 3587 - Email: mlevin@spokerecap.com - Website: spokerecap.com - Signed by: Michael Levin (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1783311/000138597122000003/spokepublic.pdf --- {0}------------------------------------------------ # **SPOKE REAL ESTATE FINANCIAL, LLC** **FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION** **DECEMBER 31, 2021** {1}------------------------------------------------ | | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20S49 | | | 0MB APPROVAL
0MB Number 3235-0 123
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hours per response. 12 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-----------------------------------------|--------------------------|-----------------------------------------------------------------------------------------------------------------------| | | ANNUAL REPORTS | | | SEC Fil[ NUMBER | | | FORM X-17A-5 | | | 8-70381 | | | PART Ill | | | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FACING PAGE | | | | | FILING FOR THE PERIOD BEGINNING _0_1_/0_1 /_2_1 | | ___ | AND ENDING _1_2_/_3_1 _/ | 2_1 _
_
_ _ | | | MM/00/YY | | | MM/00/YY | | | A. REGISTRANT IDENTIFICATION | | | | | NAME oF FIRM: Spoke Real Estate Financial, LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
!!!I Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer | D Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 2500 Bryden Road | | | | | | | (No. and Street) | | | | | Columbus | | OH | | 43209 | | (City) | | {State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Michael Levin | 614-296-3587 | | | mlevin@spokerecap.com | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing•
Raines & Fischer LLP | (Name - if individual, state last, first, and middle name) | | | | | 555 Fifth Avenue, 9th floor | New York | | NY | 10017 | | (Address)
11-5-2009 | (City) | | (State)
3760 | (Zip Code) | | l"
of R,g;sh PCAOSJ(U ap•lcabl•I FOR OFFICIAL USE ONLY | | | | (PCA08 '''"""'" Nombe,, U appllrabl•l I | | | | | | | | • Oaims 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-S(e)ll)(ii), if applicable.
Persons who are to respond t o the collection of Information contained In this form are not required to respond unless the form
displays a currently valid 0MB control number. | | | | | {2}------------------------------------------------ #### OATH OR AFFIRMATION | | financial report pertaining to the firm of | as of
Spoe Real Estate F1nano al, LLC | |----------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | Oecember 31 | 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,(Mi91 | 1!U&~ijmer. | | | ,,,'\,st>. A G~,',,,, | | | | ''!:,_,'V
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Melissa A Garland
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~-l'le11ember 2022 | | | ,,,,,.,11,,,,, | | | | | This filing•• contains (check all applicable boxes): | | | | iil (a) St atement of financial condition. | | | | D (b) Notes to consolidated statement of financial condition. | | | | | iil (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a st atement of | | | comprehensive income (as defined in § 210.1-02 of Regulation S-X). | | | iil (d) Statement of cash flows. | | | | | iil (e) St atement of changes in stockholders' or partners' or sole proprietor's equity. | | | | D (f) Statement of changes in liabilities subordinated to claims of creditors. | | | | iil (g) Notes to consolidated financial statements. | | | | iil (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.lSa-l , as applicable. | | | 0 | (i) Computation of tangible net worth under 17 CFR 240.lSa-2. | | | | | iil U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. | | 0 | | (k) Computation for determination of security-based swap reserve requirement s pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or | | | Exhibit A to 17 CFR 240.lSa-4, as applicable. | | | 0 | (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.1Sc3-3. | | | | | iil (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. | | 0 | | (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR | | | 240.1Sc3-3(p)(2) or 17 CFR 240.lSa-4, as applicable. | | | | | iil (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net | | | | worth under 17 CFR 240.1Sc3-l, 17 CFR 240.lSa-1, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 | | | | CFR 240.1Sc3-3 or 17 CFR 240.lSa-4, as applicable, if material differences exist, or a statement that no material differences | | exist. | | | | | | | - 0 (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - **iil** (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - O (r) Compl iance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. - iil (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. O (t) Independent public accountant's report based on an examination of the statement of financial condition. - **iii** (u) Independent public accountant's report based on an examination of the financial report or financial statement s under 17 CFR 240.17a-5, 17 CFR 240.lSa-7, or 17 CFR 240.17a-12, as applicable. - O (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. - l!!!i (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.l Sa-7, as applicable. - O (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12, as applicable. - 0 (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a stat ement that no material inadequacies exist, under 17 CFR 240.17a-12(k). 0 (z) Other: \_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ \_ - - *.. To request confidential treatment* of certain portions of *this filing, see* 17 CFR *l40.17o-S(e)(3)* or 17 CFR 240.18o-7(dJ(2J, os *applicable.* {3}------------------------------------------------ # **SPOKE REAL ESTATE FINANCIAL, LLC** # **DECEMBER 31, 2021** #### **TABLE OF CONTENTS** ## **Report of Independent Registered Public Accounting Firm** | Financial Statements
Page | | |---------------------------------------------------------------------------------------------------|--| | Statement of Financial Condition 1 | | | Statement of Operations 2 | | | Statement of Changes in Member's Equity 3 | | | Statement of Cash Flows 4 | | | Notes to the Financial Statements 5-7 | | | Supplementary Information | | | I - Computation of Net Capital
Pursuant to Rule 15c3-1 8 | | | Other Information | | | II - Computation for Determination of the Reserve Requirements
Pursuant to Rule 15c3-3 9 | | | III - Information Relating to the Possession or Control Requirements
Pursuant to Rule 15c3-3 9 | | | Report of Independent Registered Public Accounting Firm | | | Management Statement Regarding Compliance with the Exemption
Provisions of SEC Rule 15c3-3 10 | | {4}------------------------------------------------ ),)7+\$9(18( 7(/ 7+)/225 )\$; 1(:<25.1< ll #### **5(32572),1'(3(1'(175(\*,67(5('38%/,&\$&&2817,1\*),50** 7RWKH%RDUGRI'LUHFWRUVDQG0HPEHURI6SRNH5HDO(VWDWH)LQDQFLDO//& #### **2SLQLRQRQWKH)LQDQFLDO6WDWHPHQWV** :HKDYHDXGLWHGWKHDFFRPSDQ\LQJVWDWHPHQWRIILQDQFLDOFRQGLWLRQRI6SRNH5HDO(VWDWH)LQDQFLDO//&WKH³&RPSDQ\´DVRI 'HFHPEHU DQG WKH UHODWHG VWDWHPHQWV RI RSHUDWLRQV FKDQJHV LQ PHPEHUV¶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¶VPDQDJHPHQW2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQ WKH&RPSDQ\¶V ILQDQFLDO VWDWHPHQWV EDVHG RQ RXUDXGLW:HDUHD SXEOLFDFFRXQWLQJ ILUP UHJLVWHUHGZLWKWKH3XEOLF&RPSDQ\ \$FFRXQWLQJ 2YHUVLJKW %RDUG 8QLWHG 6WDWHV ³3&\$2%´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¶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¶VDXGLWRUVLQFH 1HZPrepaid expenses | \$
128,779
6,617 | |------------------------------------------------------|------------------------| | Total assets | \$
135,396 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities:
Accounts Payable
Due to affiliate | \$
24,568
1,876 | | Total liabilities | 26,444 | | Member's equity | 108,952 | | Total liabilities and member's equity | \$
135,396 | The accompanying notes are an integral part of these financial statements {6}------------------------------------------------ ## **SPOKE REAL ESTATE FINANCIAL, LLC STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2021** | Revenues: | | |--------------------------|---------------| | Fee income | \$
175,000 | | Total income | 175,000 | | Expenses: | | | Professional fees | \$
102,645 | | Expense sharing expenses | 22,511 | | Regulatory fees | 7,687 | | Communications | 1,338 | | Other expenses | 10,933 | | Total expenses | 145,114 | | Net Income | \$
29,886 | The accompanying notes are an integral part of these financial statements {7}------------------------------------------------ ## **SPOKE REAL ESTATE FINANCIAL, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2021** | Member's equity - January 1, 2021 | \$
79,066 | |-------------------------------------|---------------| | Net income | 29,886 | | Member's equity - December 31, 2021 | \$
108,952 | The accompanying notes are an integral part of these financial statements {8}------------------------------------------------ ## **SPOKE REAL ESTATE FINANCIAL, LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2021** | Cash flows from operating activities: | | |-------------------------------------------|---------------| | Net income | 29,886 | | Prepaid expenses | (769) | | Accounts payable | (6,457) | | Due to affliate | 1,876 | | Net cash provided by operating activities | 24,537 | | Net increase in cash | 24,537 | | Cash, beginning of period | 104,242 | | Cash, end of period | \$
128,779 | {9}------------------------------------------------ #### **1. ORGANIZATION AND DESCRIPTION OF BUSINESS** Spoke Real Estate Financial, LLC (the "Company"), a Delaware Corporation was established on May 13, 2019 and is a wholly owned subsidiary of Spoke Real Estate Enterprises LLC (the "Parent"). The Company is a registered broker-dealer with the Securities and Exchange Commission (the "SEC") and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"), as of October 15, 2019. The Company acts as a private placement agent for real estate investment syndications that are structured as direct participation programs. The Company works with investment offerings that are structured and managed by one of its affiliates, Spoke Management LLC. A separate limited liability company is formed for each investment opportunity and controlled by Spoke Management LLC. The syndications are sold pursuant to the private placement exemption under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D. All transactions are effected through a subscription document on an agency basis and funds are held in a bank escrow account. ## **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### *Basis of presentation* The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). #### *Use of estimates* The preparation of financial statements in conformity with U.S. 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. #### *Revenue recognition* In accordance with ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASC Topic 606") revenues from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. {10}------------------------------------------------ ## **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** *(continued)* The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for those promised services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration, if any. This amount is disclosed in each Private Placement Memorandum. Revenue is recognized at a point in time once the contingency is removed and the transaction is closed. ## *Uncertain tax positions* The Company applies the provisions of ASC 740 "Income Taxes" as they relate to uncertain tax positions. The Company was not required to recognize any amounts from uncertain tax positions as of December 31, 2021. 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. In the event that tax authorities assess interest and penalties on unrecognized tax benefits, the Company will reflect such amounts in tax expense and income taxes payable. ## **3. CONCENTRATION OF CREDIT RISK** The Company's cash deposits are held by one financial institution and therefore, are subject to credit risk to the extent those balances exceeded the Federal Deposit Insurance Corporation ("FDIC") insurance limit of \$250,000. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash. # **4. RELATED PARTY TRANSACTIONS** The Company earns all revenue from investment syndications with related party affiliates. Pursuant to an expense sharing agreement, the Company reimburses the Parent for allocated administration fees, office space, insurance and other services. These expenses were paid for by the Parent. These charges are updated periodically, and determined based on percentages of personnel time and other factors. For the year ended December 31, 2021, the Parent charged the Company \$22,511 for such expenses. {11}------------------------------------------------ ## **5. NET CAPITAL REQUIREMENTS** The Company is subject to the uniform net capital requirements of Rule 15c3-1 ("The Rule") of the Securities and 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 \$5,000 or 6 2/3 % of aggregate indebtedness. At December 31, 2021, the Company had net capital, as defined, of \$102,335, which exceeded the required minimum net capital of \$5,000 by \$97,335. Aggregate indebtedness at December 31, 2021 totaled \$26,444. The Company's percentage of aggregate indebtedness to net capital was 25.84%. ## **6. SUBSEQUENT EVENTS** Management of the Company has evaluated events and transactions that have occurred through the date the financial statements are available to be issued, and determined that there are no material events that would require disclosures in the Company's financial statements. ## **7. COVID-19** On January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health Emergency of International concern" and on March 2020, declared it to be a pandemic. Action taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, and quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and actions taken to mitigate the spread of it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the company operates. On March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act, (CARES Act), was enacted to amongst other provisions, provide emergency assistance for individuals, families and businesses affected by the coronavirus pandemic. It is unknown how long the adverse conditions associated with the coronavirus will last and what the complete financial effect will be to the Company. To date, the Company is not experiencing any decline in revenue. {12}------------------------------------------------ # **SPOKE REAL ESTATE FINANCIAL, LLC** # **SUPPLEMENTARY INFORMATION** **DECEMBER 31, 2021** {13}------------------------------------------------ #### **SPOKE REAL ESTATE FINANCIAL, LLC COMPUTATION OF NET CAPITAL PURSUANT TO RULE 15c3Ǧ1 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2021** #### **SCHEDULE I:** | Total member's equity | \$ | 108,952 | |-----------------------------------------------------------------------------------------------------|----|---------| | Deductions and/or charges: | | | | Prepaid expenses | | 6,617 | | Net capital | \$ | 102,335 | | | | | | Computation of basic net capital requirement:
Minimum net capital requirement, greater of 6 2/3% | # | | | of aggregate indebtedness (\$26,444) | \$ | 1,763 | | Statutory minimum net capital required | \$ | 5,000 | | Net capital requirement (greater of the minimum calculation or | | | | the statutory amount) | \$ | 5,000 | | Excess net capital | \$ | 97,335 | | Net capital less greater of 10% of aggregate indebtedness or 120% of minimum | | | | net capital | \$ | 96,335 | | Computation of aggregate indebtedness: | | | | Accounts payable | \$ | 24,568 | | Due to affiliate | | 1,876 | | Aggregate indebtedness | \$ | 26,444 | | Percentage of aggregate indebtedness to net capital | | 25.84% | There were no material differences existing between the above computation and the computation included in the Company's corresponding unaudited Form X-17A-5 Part IIA filing, as of December 31, 2021. Accordingly, no reconciliation is necessary. {14}------------------------------------------------ ## **SPOKE REAL ESTATE FINANCIAL, LLC OTHER INFORMATION DECEMBER 31, 2021** ## **Schedule II: Computation for Determination of the Reserve Requirements Pursuant to Rule 15c3-3 of the Securities and Exchange Commission:** The Company does not claim an exemption from SEA Rule 15c3-3, in reliance on Footnote 74 to SEC Release 34-70073. #### **Schedule III:** **Information Relating to the Possession or Control Requirements Pursuant to Rule 15c3-3 of the Securities and Exchange Commission:** The Company does not claim an exemption from SEA Rule 15c3-3, in reliance on Footnote 74 to SEC Release 34-70073 and did not maintain possession or control of any customer funds or securities as of December 31, 2021. {15}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¶VFRPSOLDQFHZLWKWKHH[HPSWLRQSURYLVLRQV\$UHYLHZLVVXEVWDQWLDOO\OHVVLQVFRSHWKDQ DQH[DPLQDWLRQWKHREMHFWLYHRIZKLFKLVWKHH[SUHVVLRQRIDQRSLQLRQRQPDQDJHPHQW VVWDWHPHQWV\$FFRUGLQJO\ZH GRQRWH[SUHVVVXFKDQRSLQLRQ %DVHGRQRXUUHYLHZZHDUHQRWDZDUHRIDQ\PDWHULDOPRGLILFDWLRQVWKDWVKRXOGEHPDGHWRPDQDJHPHQW V VWDWHPHQWVUHIHUUHGWRDERYHIRUWKHPWREHIDLUO\VWDWHGLQDOOPDWHULDOUHVSHFWVEDVHGRQWKH&RPSDQ\¶VEXVLQHVV DFWLYLWLHVFRQWHPSODWHGE\)RRWQRWHRIWKH6(&5HOHDVH1RDGRSWLQJDPHQGPHQWVWR&)5 DDQGUHODWHG6(&6WDII)UHTXHQWO\\$VNHG4XHVWLRQV 1HZ