# TRANSPACIFIC GROUP LLC X-17A-5 (2020-02-25) — Broker-dealer annual report - Company: TRANSPACIFIC GROUP LLC - Form: X-17A-5 - Filed: 2020-02-25 - Period: 2019-12-31 - Accession: 0001396609-20-000001 - CIK: 1396609 - File #: 8-67611 - Material weakness: No - Auditor: RSGNC&S - Auditor location: WOODBURY, NY - Contact: Scott Daniels - Phone: 2127514422 - Signed by: Scott Daniels (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1396609/000139660920000001/transpacpublic19.pdf --- {0}------------------------------------------------ ### TRANSPACIFIC GROUP LLC Financial Statement of Condition December 31, 2019 {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | OMB APPROVAL | | | | | |--------------------------|-----------|--|--|--| | OMB Number: | 3235-0123 | | | | | Expires: August 31, 2020 | | | | | | Estimated average burden | | | | | | hours per response 12.00 | | | | | # **ANNUAL AUDITED REPORT FORM X-17 A-5 PART** Ill | SEC FILE NUMBER | |-----------------| | 8-
67611 | # 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 | 01/01/2019 | AND ENDING | 12/31/2019 | | | |--------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|------------|--------------------------------------|--|--| | | ----------~~-------------
MM/DD/YYYY | | --------~--~----------
MM/DD/YYYY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF BROKER-DEALER: | | | | | | | Transpacific Group LLC | | | OFFICIAL USE ONLY | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM 10. NO. | | | | | 485 Madison Ave Suite 1500 | | | | | | | (No. and Street) | | | | | | New York | NY | | 10022 | | | | (City) | (~tate) | | (Zip Code) | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
Raphael Goldberg Nikpour Cohen & Sullivan | B. ACCOUNT ANT IDENTIFICATION | | (Area Code-- Telephone No.) | | | | Certified Public Accountants PLLC | | | | | | | | (Name -- i/"indiridual. state last. first. nuddle name) | | | | | | 97 Froehlich Farm Blvd | Woodbury | NY | 11797 | | | | (Address) | (City) | (State) | (Zip Code) | | | | CHECK ONE:
~ Certified Public Accountant
D Public Accountant
D Accountant not resident in United States or any of its possessions | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | *\*Claims for exemptionfiYJ/11 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/or the exemption. See section 2.f0.17a-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. {2}------------------------------------------------ ### **OATH OR AFFIRMATION** | I,
, swear (or affirm) that to the
Scott D Daniels | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | ~--~----------------------~~~~~---------------------------
best of my knowledge and belief the accompanying financial statement and supp01iing schedules pertaining to the firm of | | | ------------------------------------~T~r~a~n~sp~a~c~ifi~Ic~G~r~o~up~L~L~C~-------------------------------------'asof | | | ______________ ___:1::2::/3~1/~2::0::1.::9 _____________ , are true and correct. I further swear (or affirm) that neither the company | | | nor any partner, proprietor, principal oflicer or director has any proprietary interest in any account classified solely as that of | | | a customer, except as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | Title | | | | | | | | | | | | | | | | | | This report** contains (check all applicable boxes): | | | 0
(a) Facing page. | | | 0
(b) Statement of Financial Condition. | | | D
(c) Statement of Income (Loss). | | | B (d) Statement of Changes in Financial Condition. | | | (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. | | | 0
(g) Computation ofNet Capital. | | | D
(h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | D
(i) Information Relating to the Possession or control Requirements Under Rule 15c3-3. | | | D
(j) A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule 15c3-l and the | | | Computation for Determination of the 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 con | | | solidation. | | | 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. | | | 0
(o) Exemption repO!i | | *\*\*For conditions of confidential treatment of certain portions ofthisfiling, see section 240.17a-5(e)(3).* {3}------------------------------------------------ ### TRANSPACIFIC GROUP LLC DECEMBER 31, 2019 ### **CONTENTS** | Report oflndependent Registered Public Accounting Firm | | |--------------------------------------------------------|-----| | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-9 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Mark C Goldberg, CPA Mark Raphael, CPA Florio Somii-Nikpour, CPA Allan B. Cohen, CPA Michael R. Sullivan, CPA Anita C Jacobsen, CPA Founding Portner: Melvin Goldberg, CPA ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Transpacific Group LLC ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Transpacific Group LLC (the "Company") (a limited liability company), as of December 31, 2019, and the related notes to the financial statement In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Transpacific Group LLC as of December 31, 2019, 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 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 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. Raphael Goldberg Nikpour Cohen & Sullivan Certified Public Accountants PLLC We have served as the Company's auditors since 2016 Woodbury, New York February 24, 2020 {5}------------------------------------------------ # TRANSPACIFIC GROUP LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 | ASSETS | | |---------------------------------------------------------------------|-----------------| | Cash | \$
509,890 | | Accounts receivable | 2,898,750 | | Prepaid expenses | 75,464 | | Property and equipment (net of accumulated depreciation of\$44,305) | 108 | | Other assets | 197,030 | | TOTAL ASSETS | \$
3,681,242 | | LIABILITIES AND MEMBER'S EQIDTY | | | Liabilities | | | Accrued expenses and other liabilities | \$
377,454 | | Warrant reserve | 10,000 | | TOTAL LIABILITIES | 387,454 | | Member's equity | 3,293,788 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
3,681,242 | The accompanying notes are an integral part of these financial statement {6}------------------------------------------------ ### NOTE 1. ORGANIZATION AND NATURE OF BUSINESS TransPacific Group LLC (the "Company"), a Delaware limited liability company, was formed on January 29, 2007. The Company, a broker-dealer registered with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"), acts as a third-party selling agent for private collective investment vehicles. The Company will continue indefinitely, unless terminated sooner by Management. #### NOTE2. SIGNIFICANT ACCOUNTING POLICIES # Basis of Presentation The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") which 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. ### Fair Value of Financial Instruments The Company's financial instruments consist of cash, accounts receivable, and accounts payable. The fair value of cash is based upon the bank balance at December 31, 2019 adjusted by any uncleared transactions. The fair value of accounts receivable and accounts payable is estimated by management to approximate their carrying value at December 31, 2019. The Company maintains all of its cash balances at one financial institution. At times, these balances may exceed Federal Deposit Insurance Corporation insured limits. The Company has not experienced any losses in such accounts. {7}------------------------------------------------ #### NOTE2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ### Accounts Receivable Accounts receivable are recorded at the invoiced amount. In estimating any required allowance for doubtful accounts, management considers historical losses adjusted to take into account current market conditions and the Company's customers' financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company reviews its accounts receivable monthly. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Allowance for doubtful was not required as of December 31, 2019. #### NOTE3. NET CAPITAL REQUIREMENT The Company is subject to the SEC Uniform Net Capital 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 I. At December 31, 2019, the Company had net capital of \$294,095 which was \$271,286 in excess of its required net capital of \$22,809. The Company's net capital ratio was 1.15 to 1. The Company does not handle cash or securities on behalf of customers. Therefore, the Company is exempt from the SEC Rule 15c3-3. #### NOTE4. PROPERTY AND EQUIPMENT Property and equipment are stated at cost, less accumulated depreciation. Depreciation is based on the straight line method over the estimated useful lives of the assets. Property and equipment at December 31, 2019 consisted of the following: | | | Estimate Useful Life | | |--------------------------------|-----------|----------------------|--| | Computer equipment | \$ 36,594 | 3 Years | | | Fumiture | 7,819 | 5 Years | | | | 44,413 | | | | Less: accumulated depreciation | (44,305) | | | | Property and equipment, net | \$ | I 08 | | {8}------------------------------------------------ #### NOTE 5. INCOME TAXES The Company is a single member limited liability company. The Internal Revenue Code ("IRC") provides that any income or loss is passed through to the member for federal and state income tax purposes. Accordingly, the Company has not provided for federal or state income taxes. The Company is, however, subject to New York City Unincorporated Business Tax and records a provision for unincorporated business taxes. At December 31, 2019, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances may require. As of December 31, 2019 the Company had a current tax receivable of \$20,000 included in assets on the accompanying Statement of Financial Condition. In addition the company had a deferred income tax liability for the year ended December 31, 2019 of \$19,000. This deferred tax liability is solely related to the accounts receivable ofthe Company. #### NOTE6. WARRANT RESERVE The Company has received a deposit of \$1 0,000 from an entity which has the right to convert this deposit into capital at a future date based on terms disclosed in its warrant agreement. #### NOTE 7. CONCENTRATION OF CREDIT RISK In the normal course of its business, the Company enters into financial transactions where the risk of potential loss due to changes in the market (market risk) or failures of the other parties to the transaction to perform ( counterparty risk) exceeds the amounts recorded for the transaction. The Company's policy is to continuously monitor its exposure to the market and counterparty risk through the use of a variety of financial, position and credit exposure reporting and control procedures. In addition, the Company has a policy of reviewing the credit standing of each broker-dealer, clearing organization, customer and/or other counterparty with which it conducts business. As of December 3 I, 20 I 9, there were no customer accounts having debit balances which presented any risks, nor was there any exposure with any other transaction conducted with any other broker. Placement fees earned from two customers accounted for I 00% of the Company's total fees in 20 I 9. Fees receivable relating to three customers at December 31, 2019 accounted for 92% of the fees receivable. {9}------------------------------------------------ #### NOTES. COMMITMENTS AND CONTINGENT LIABILITIES The Company had no lease or equipment rental commitments, no underwriting commitments, no contingent liabilities and had not been named as defendant in any lawsuit at December 31, 2019 or during the year then ended. #### NOTE9. RETIREMENT PLANS The Company maintains a profit sharing plan covering eligible employees. Employees are vested at 20% per year after 2 years of service. Annual contributions to the plan are at the discretion of the Managing Member and are limited to the percentage of eligible employee compensation under relevant Internal Revenue Code sections. The Company sponsors a 401 (k) for eligible employees providing pre-tax salary deferrals. The Company participates in a noncontributory defined benefit pension plan which covers substantially all of its employees, and is funded through a trust established under the plan. The benefits are based on years of service, and the employee's compensation during the five consecutive years in which their average compensation was highest. Funding of retirement costs for the plan complies with the funding requirements of the Employee Retirement Income Security Act of 1974 ("ERISA") and other federal legislation. | Obligations and Funded Status | Pension Benefits
2019 | | |-----------------------------------------|--------------------------|--| | Change in benefit obligation: | | | | Benefit obligation at January 1, 2019 | \$
2,589,061 | | | Service cost | 0 | | | Interest cost | 111,742 | | | Actuarial gain | 58,843 | | | Assumption changes | 283,660 | | | Disbursements paid | | | | Benefit obligation at December 31, 2019 | \$
3,043,306 | | | | | | {10}------------------------------------------------ #### NOTE9. RETIREMENT PLANS (Continued) | Change in plan assets:
Fair value of plan assets at January I, 2019
Actual return on plan assets
Employer contribution
Paid to participants | \$
2,046,519
283,404
200,000 | |---------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------| | Fair value of plan assets at December 31, 2019 | =\$~=~2,;,;,5~2;;.;;,9,;;;,9::;:2;;,;;3=~ | | Funded Status at end of year | =\$~=,d(;;,.5 ;;.;13;.b,3;;,.8;;,;;3='=)= | | Amounts recognized in the statement of financial | | | condition consist of:
Pension payable | ,;\$~==5;;;,0~,~00;;;,0~~ | | Amounts recognized in
accumulated other comprehensive
income consist of:
Net actuarial gain | ;\$~==~3~7~5b;;,5~5.;;;2= | | Summary of benefit obligations and plan assets: | | | Projected benefit obligation | \$
3,043,306 | | Accumulated benefit obligation | \$
3,045,235 | | Fair value of plan assets | \$
2,529,923 | | Components of net periodic benefit cost and other amounts
recognized in other comprehensive income: | | | Service cost | \$
0 | | Interest cost | 111,742 | | Expected return on plan assets | (1 07,326) | | Amortization ofnet (gain) loss | 908 | | Net periodic cost | \$
5,324 | {11}------------------------------------------------ ### NOTE9. RETIREMENT PLANS (Continued) | Net gain | \$
165,517 | |-----------------------------------------------------------------------------------------|---------------| | Total recognized in net periodic pension benefit cost and
other comprehensive income | \$
170 841 | # Other changes in plan assets and benefit obligations recognized in other comprehensive income The estimated net loss and prior service cost for the defined benefit pension plan that will be amortized fi·om accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are \$15,827 and \$0 respectively. | Weighted average assumptions used to determine | | |---------------------------------------------------------------------------------------------------------------|-------| | benefit obligation at December 31, 2019: | | | Discount rate | 3.22% | | Rate of compensation increase | 0.00% | | Weighted average assumptions used to determine net
periodic benefit cost for year ended December 31, 2019: | | | Discount rate | 4.22% | | Expected long-term return on plan assets | 5.00% | | Rate of compensation increase | 5.00% | ### Contributions Contributions expected to be made during the year ending December 31, 2020 are expected to approximate \$50,000. ### Estimated Future Benefit Payments | Year ending December 31, Pension Benefits | | | |-------------------------------------------|-----------|--| | \$ | 3,043,307 | | | \$ | | | | \$ | | | | \$ | | | | \$ | | | | \$ | 6,428 | | | | | | {12}------------------------------------------------ #### NOTE 10. GUARANTEES F ASB ASC 460, *Guarantees,* requires the Company to disclose information about its obligations under cetiain guarantee arrangements. F ASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying value (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement as well as indirect guarantees of the indebtedness of others. The Company has issued no guarantees at December 31, 2019 or during the year then ended. #### NOTE11. SUBSEQUENT EVENTS Subsequent events have been evaluated through February 24, 2020, the date the financial statements were available to be issued. There have been no subsequent events requiring recognition or disclosure in the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.