# EHCP CORPORATE FINANCE, LLC X-17A-5 (2020-02-14) — Broker-dealer annual report
- Company: EHCP CORPORATE FINANCE, LLC
- Form: X-17A-5
- Filed: 2020-02-14
- Period: 2019-12-31
- Accession: 0001399240-20-000001
- CIK: 1399240
- File #: 8-67638
- Material weakness: No
- Auditor: Rubio CPA, PC
- Auditor location: Atlanta, GA
- Contact: Todd Watkins
- Phone: 404-890-7703
- Signed by: J. Todd Watkins (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1399240/000139924020000001/ehcpaud.pdf
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l!Nrn:DST A TES S[Cl "RllTtSA~l) E.XCR o\.~GECOM~OSSION Wa5~i•&toa. D.C. 10549
| ANNUAL AUDITED REPORT |
|-----------------------|
| FORM X-17A-5 |
| PART Ill |
| OMS APPROVAL | | | |
|------------------------|---------------------------|--|--|
| OMS Number. | 323~123 | | |
| Exp ~ | August 31,2020 | | |
| Est nvt~ aver~g~ burdM | | | |
| | hoursper,~--····· · 12.00 | | |
| | | | |
| SEC FILE NUMBER |
|-----------------|
| 8-67638 |
FACL"\G PAGE bfonaatioa Required o-f Broken and Dealen Punuant to Sectioa 17 of the
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MMIDDIYY | |
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| X-\\IE oF BROKER-DE.-\LER. EHCP Corporate Finance, LLC | | OFFICIAL USE ONLY | |
| ADDRESS OF Pw;CIPAL PL.t.CE OF BUSJJI-"'ESS· (Do DOt usc P.O. Box No.) | | FIRM 1.0. NO. | |
| 3350 Riverwood Parkway, Suite 2150 | | | |
| (So aDd Scrftt) | | | |
| GA | | 30339 | |
| (Stat£) | | (Zip Code) | |
| | | (Aru Cod!: - Tckpbonc Number) | |
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| 'ZTZ7 Paces Ferry Rd SE. &ita 2-1680 Atlanta | GA | 30339 | |
| | ~) | {Zip Code) | |
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| :\ccoun1mt DOl re:sidan iD United States CJt &Dy rX its possessions. | | | |
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| FOR omCIAL USE ONLY | | | |
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| | 'R.EPORT FOR THE PERIOD BEG!m.'DCGQ1/01/19 | S«urities Exc\aage Ac:t of 1934 and Rule 17a-5 Thereunder
AND ENDING 12/31/19
~ REGISTR.\~T IDE~TIFICA TION
K"-.\IE ·"-''D TE.LEPHO~"E ~l.'}.ffiER. OF PERSON TO CONTACT IN REGARD TO THIS REPORT
B. ACCOl~IA YI IDE~IIFICA TIO:S
lu'lT .t~ opinioo is contained in this Report• | |
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# **EHCP CORPORATE FINANCE, LLC**
Financial Statements
As of and for the Year Ended December 31, 2019 With Report of Independent Registered Public Accounting Firm
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# RUBIO CPA, PC
CERTIFIED PUBLIC ACCOUNTANTS
2727 Paces Ferry Road SE Building 2, Suite 1680 Atlanta, GA 30339 Office: 7 70 690-8995 Fax: 770 838-7123
## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Member of EHCP Corporate Finance, LLC
#### Opinion on the Finane ial Statements
We have audited the accompanying statement of financial condition of EHCP Corporate Finance, LLC (the "Company") as of December 31, 2019, the related statements of operations, changes in member's equity, 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 o f the Company as of December 31, 20 19, and the results of its operations and its cash flows for the year then ended in confonnity with accounting principles generally accepted in the United States of America.
#### Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company·s financial statements based on our audh. 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 perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financia l reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement to the financ ial statements, whether due to error or fraud, and perfom1ing 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 bemieve that our audit provides a reasonable basis of our opinion.
#### Supplemental Information
The infonnation contained in Schedules I and II and has been subjected to audit procedures perfonned 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 detennining whether the information in Schedules I and II reconciles to the financial statements or the underlying accounting and other records, as applicable, and perfonning procedures to test the completeness and accuracy of the information presented in the accompanying schedules. In forming our opinion on the accompanying
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schedules, 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 aforementioned supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
We have served as the Company's auditor since 2018.
February 13. 2020 Atlanta, Georgia
Rubio CPA, PC
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# EHCP Corporate Finance, LLC Statement of Financial Condition December 31 , 2019
| Assets | |
|--------------------------------------------------|----------------------|
| Cash
Prepaid expenses | \$
30,571
820 |
| Total Assets | \$
31 ,391 |
| Liabilities and Member's Equity | |
| Liabilities
Accounts payable
Due to Parent | \$
2,000
5,776 |
| Total liabilities | 7,776 |
| Member's Equity | 23,615 |
| Total Liabilities and Member's Equity | \$
31 ,391 |
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# EHCP Corporate Finance, LLC Statement of Operations For The Year Ended Decemer 31, 2019
| Revenue | |
|-----------------------------|----------------|
| Investment banking | \$ |
| Total revenue | |
| Operating expenses | |
| Professional services | 38,002 |
| Occupancy | 4,041 |
| IT, data and communications | 954 |
| Other expenses | 3,857 |
| Total operating expenses | 46,854 |
| Net Loss | \$
{46 854~ |
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EHCP Corporate Finance, LLC Statement of Changes in Member's Equity For The Year Ended December 31, 2019
| Balance, December 31, 2018 | \$
25,469 |
|-----------------------------|--------------|
| Capital contributions | 45,000 |
| Net loss | (46,854) |
| Balance, December 31 , 2019 | \$
23,615 |
| | |
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# EHCP Corporate Finance, LLC Statement of Cash Flows For The Year Ended December 31 , 2019
| Cash flows from operating activities: | |
|-----------------------------------------------------------------------------|----------------|
| Net loss | \$
(46,854) |
| Adjustments to reconcile net loss to net cash used by operating activities: | |
| Changes in assets and liabilities: | |
| Deposits | 29 |
| Accounts payable | (750) |
| Due to Parent | 5,175 |
| Net cash used by operating activities: | (42,400) |
| Cash Flows From Financing Activities: | |
| Capital contributions | 45,000 |
| Net Cash Provided In Financing Activities | 45,000 |
| Net Increase In Cash | 2,600 |
| Cash at the beginning of the year | 27,971 |
| Cash at the end of the year | \$
30 571 |
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#### EHCP CORPORATE FINANCE, LLC NOTES TO FINANCIAL STATEMENTS December31 , 2019
Note ~ Description of Business and Summary of Significant Accounting Policies
Description of Business: EHCP Corporate Finance, LLC (formerly Edge Corporate Finance, the "Company") was organized in the state of Georgia on October 9, 2007 as a licensed broker dealer to provide merger and acquisition advisory services and to raise capital as an agent in private placements. EHCP Corporate Finance, LLC is a single member limited liability company owned 100% by Edge Healthcare Partners, LLC ("Parent") at December 31 , 2019. As a limited liability company, the member's liability is limited to its investment.
Use of Estimates: Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and reported revenues and expenses. Actual results could vary from the estimates that were used.
Cash: The Company maintains its cash deposit at a high credit quality financial institution. Deposits at times may have exceeded federally insured limits.
Accounts Receivable: The Company uses the allowance method to account for uncollectible accounts receivable. Management continually monitors the collectibility of its customer accounts; when indications arise that an amount is not likely to be collected, it is charged to the allowance for doubtful accounts. As of December 31 , 20 19, management reviewed the status of accounts receivable and determined that an allowance for doubtful accounts was not necessary.
Revenue Recognition: Fees are generally recognized when earned and realized or realizable, when persuasive evidence of an arrangement exists, delivery has occurred, or services have been rendered, the price is fixed and determinable, and collectability is reasonably assured.
Revenue from Contracts with Customers Standard (ASU 2014-09) core principle is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 prescribes a fi1vestep process to accomplish this core principle, including:
- Identification of the contract with the customer;
- Identification of the performance obligation(s) under the contract;
- Determination of transaction price;
- Allocation of the transaction price to the identified performance obligation(s); and
- Recognition of revenue as (or when) an entity satisfies the identified performance obligation(s).
The Company recognizes success fee revenue upon completion of a success fee-based transaction as this satisfies the only performance obligation identified in accordance with this standard.
Income Taxes: The Company's income or loss is reported on the member's tax return. Accordingly, the financial statements do not include a provision for income taxes.
Management does not believe there are any uncertain tax positions as defined by FASB Accounting Standards Codification (ASC) 740 Accounting for Income Taxes.
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#### EHCP CORPORATE FINANCE, LLC NOTES TO FINANCIAL STATEMENTS December31 , 2019
#### Note A - Description of Business and Summary of Significant Accounting Policies - continued
Subsequent Events: Subsequent events were evaluated through the date the financial statements were issued. Management has performed an evaluation of events that have occurred subsequent to the financial statements being issued and there are no material subsequent events that would require disclosure in this report or would be required to be recognized in the financial statements as of December 31, 2019.
#### Note 8 - Related Party Transactions
The Company has an expense sharing agreement with its Parent whereby rent and certain operating expenses are paid by Parent on the Company's behalf. The Company then reimburses the Parent for these expenses. Operating expenses are allocated based on estimated usage. Allocated expenses amounted to \$5,174 during the year ended December 31 , 2019. The balance due to the Parent on the accompanying statement of financial condition arose from this expense sharing agreement.
#### Note C - Net Capital Requirement
As a registered broker-dealer under the Securities and Exchange Commission ("SEC") and member of the Financial Industry Regulatory Authority ("FINRA"), the Company is subject to the SEC's Uniform Net Capital Rule 15c3-1 ("Net Capital Rule"). Under the Net Capital Rule, the Company is required to maintain minimum net capital of the greater of 6 2/3% of aggregate indebtedness. as defined, or \$5,000. In addition, the ratio of aggregJate indebtedness to net capital, both as defined, shall not exceed 15 to 1.
Net capital and aggregate indebtedness change from day-to-day, but as of December 31, 2019, the Company had net capital of \$22,795 which exceeded the minimum net capital requirement of \$5,000 by \$17,795. The Company's ratio of aggregate indebtedness to net capital was 0.34 to 1.
### Note D-Contingencies
The Company is subject to litigation in the normal course of business. The Company has no litigation in progress at December 31, 2019.
#### Note E-Net Loss
The Company incurred a loss for 2019 and was dependent upon capital contributions from its Parent for working capital and net capital. The Company's Parent has represented that they intend to continue to make capital contributions as needed, to ensure the Company's survival through at least one year subsequent to the date of the report of the independent registered public accounting firm.
Management expects the Company to continue as a going concern and the accompanying financial statements have been prepared on a going-concern basis without adjustments for realization in the event that the Company ceases to continue as a going concern.
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### EHCP Corporate Finance, LLC
# Schedule I Computation of Net Capital Pursuant to Rule 15c3-1 Of The Securities and Exchange Comission Ac of 1934 As of December 31 , 2019
| Computation of Net Capital | |
|--------------------------------------------------------------------------------------------------------|----------------------|
| Total member's equity | \$
23,615 |
| Deduction for non-allowable assets:
Prepaid expenses | 820 |
| Net capital | \$
22,795 |
| Aggregate indebtedness
Accounts payable
Due to Parent | \$
2,000
5,776 |
| Total aggregate indebtedness | \$
7 776 |
| Minimum net capital requirement
Net capital | \$
22,795 |
| Minimum net capital to be maintained
(greater of \$5,000 or 6 2/3% of total aggregate indebtedness) | 5,000 |
| Net capital in excess of requirement | \$
17 795 |
| Percentage of aggregate indebtedness to net capital | 34.11% |
Reconciliation with Company's computation of net capital included in Part IIA of Form X-17 A-5 as of December 31 , 2019.
There is no significant difference between the preceding computation and the Company's net capital reported in Part IIA of the unaudited Form X-17 A-5 as of December 31 , 2019.
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# EHCP Corporate Finance, LLC SCHEDULE II OTHER INFORMATION
A)
### COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2019
The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, pursuant to paragraph (k)(2)(i) of the rule.
#### B) INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31. 2019
The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, pursuant to paragraph (k)(2)(i) of the rule.
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EXEMPTION REPORT SEA RULE 17a-5(d)(4)
February 12, 2020
RUBIO CPA, PC 2727 Paces Ferry Rd. SE Building 2, Suite 1680 Atlanta, GA 30339
To Whom It May Concern:
The below information is designed to meet the Exemption Report criteria pursuant to SEA Rule 17a-5(d)(4):
EHCP Corporate Finance, LLC (the "Company") is a broker/dealer registered with the SEC and FINRA. Pursuant to paragraph k(2)(i) of SEA Rule 15c3-3, the Company is claiming an exemption from SEA Rule 15c3-3 for the fiscal year ended December 31 , 2019.
The Company has met the identified exemption provisions throughout the most recent fiscal year without exception.
The above statement is true and correct to the best of my and the Company's knowledge.
Signed: ~t:==~=
Name: J. Todd Watkins
EHCP Corporate Finance, LLC
Title: CEO
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# **RUBIO CPA, PC**
CERTIFIED PUBLIC ACCOUNTANTS 2727 Paces Ferry Road SE
Building 2, Suite 1680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 770 838-71 23
#### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Member of EHCP Corporate Finance, LLC
We have reviewed management's statements, included in the accompanying Broker Dealers Annual Exemption Report in which ( I) EHCP Corporate Finance, LlC identified the following provisions of 17 C.F.R. § 15c3-3(k) under which EHCP Corporate Finance, LLC cla imed an exemption from 17 C.F.R. § 240.15c3-3: (k)(2)(i) (the "exemption provisions"); and, (2) EHCP Corporate Finance, LLC stated that EHCP Corporate Finance, LLC met the identified exemption provisions throughout the most recent fiscal year without exception. EHCP Corporate Finance, LLC's management is responsible for compliance with the exemption provisions and 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 evidence about EHCP Corporate Finance, LLC's compliance with the exemption provisions. 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 fa irly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(i), of Rule IScJ-3 under the Securities Exchange Act of 1934.
February 13, 2020 Atlanta, GA
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Rubio CPA, PC
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.