# PARSONEX CAPITAL MARKETS, LLC X-17A-5 (2022-03-15) — Broker-dealer annual report - Company: PARSONEX CAPITAL MARKETS, LLC - Form: X-17A-5 - Filed: 2022-03-15 - Period: 2021-12-31 - Accession: 0001402593-22-000002 - CIK: 1590360 - File #: 8-69377 - Type: Broker-dealer - Material weakness: No - Auditor: BRIAN W. ANSON, CPA - Auditor location: TARZANA, CA - Contact: ANTHONY DIAMOS - Phone: 404-536-6984 - Email: anthony@parsonex.com - Website: parsonex.com - Signed by: JONATHAN MILLER (CHIEF EXECUTIVE OFFICER) Original filing: https://www.sec.gov/Archives/edgar/data/1590360/000140259322000002/PCMpubli.pdf --- {0}------------------------------------------------ | | PUBLIC | | | | | |-------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|--------------------------------------------|--|--| | | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 | 0MB APPROVAL
0MB Number: 3235-0123
Expires: Oct. 31, 2023
Estimated average burden
hours per response: 12 | | | | | | ANNUAL REPORTS | | SEC FILE NUMBER | | | | | FORM X-17A-S | | | | | | | PART Ill | | | | | | ,, | FACING PAGE
Information Requ.i�ed Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | FILING FOR THE PE�IOD BEGINNING | 01/01/2021 | AND ENDING | 12/31/2021 | | | | | MM/DD/YY | | MM/00/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | NAME oF FIRM: Parsonex Capital Markets, LLC | | | | | | TYPE OF REGISTRANT {check all applicable boxes):
0 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.) | | | | | | 831 OS. Valjey Highway, Suite 11 O | | | | | | | | (No. and Street) | | | | | | Englewood_ | co | 80112 | | | | | (City) | (State) | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Anthony Diamos | ( 404) 536-6984 | anthony@parsonex.com | | | | | (Name) | (Area Code -Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | Brian W. Anson, CPA | | | | | | | , | (Name - if individual, state last, first, and middle name) | | | | | | 18455 Burbank Blvd. Suite 404 Tarzana | | CA | 91356 | | | | (Address) | (City) | (State) | (Zip Code) | | | | 09/15/2005 | | 2370 | | | | | t• of R,g;m,uoa wUh PCAOB)l;f applicable] | FOR OFFICIAL USE ONLY | | (PCAOB R,g;,tcatooa N"mbe,, ;f applicable] | | | | r | | | | | | | | • Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | | | | | | CFR 240.17a-S(e)(l)(ii), if applicable. | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 | | | | | **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 0MB control number. **PUBLIC** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | f
Jonathan Miller
I, | | | | swear (or affirm) that, to the best of my knowledge and belief, the | | |-----------------------------------------------------------------------------------------|------|------------------------------------------------------------------------------|-------------------------------|--------------------------------------------------------------------------------|---------| | financial report
pertaining to the firm of | | | Parsonex Capital Markets, LLC | | • as of | | December
31 | � 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 proprieta | | | | int rest in any account classified solely | | | as that of a customer. | | | | | | | | | ABBY WILLIAMS
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20204042715 | Title: | Chief Exe ulive Officer | | | | | MY COMMISSION EXPIRES DECEMBER 07. 2024 | | | | **Notary Public** #### **This filing•• contains (check all applicable boxes):** - **� (a) Statement of financial condition.** - **D (b) Notes to consolidated 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 cash flows.** - **� (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.** - **D (f) Statement of changes in liabilities subordinated to claims of creditors.** - **� (g) Notes to consolidated financial statements.** - **� (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable.** - **D (i) Computation of tangible net worth under 17 CFR 240.18a-2.** - **D U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.** - **D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.lBa-4, as applicable.** - **D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3.** - **D (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 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.** - **� (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 17 CFR 240.lBa-l, or 17 CFR 240.lBa-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist.** - **D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.** - **� (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.lBa-7, as applicable.** - **D (r) Compliance report ih accordance with 17 CFR 240.17a-5 or 17 CFR 240.lBa-7, as applicable.** - **� (s) Exemption report iri'accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.** - **0 (t) Independent public accountant's report based on an examination of the statement of financial condition.** - **� (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S, 17 CFR 240.lBa-7, or 17 CFR 240.17a-12, as applicable.** - **D (v) Independent public·accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.** - **� (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.** - **D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable.** - **D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k).** - **D (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_** - *••ro request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-S(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.* {2}------------------------------------------------ # **PARSONEX CAPITAL MARKETS, LLC** STATEMENT OF FINANCIAL CONDITION FOR THE YEAR ENDED DECEMBER 31, 2021 WITH REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM {3}------------------------------------------------ # **PARSONEX CAPITAL MARKETS, LLC** #### **CONTENTS** Independent Auditor's Report FINANCIAL STATEMENTS Statement of Financial Condition Notes to Financial Statements {4}------------------------------------------------ #### **BRIAN W. ANSON** *Certified Public Accountant* 18455 Burbank Blvd., Suite 404, Tarzana, CA 91356 • Tel. (818) 636-5660 • Fax (818) 881-2605 # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members' and Board of Members of Parsonex Capital Markets, LLC # **Opinion on the Financial Statements** I have audited the accompanying statement of financial condition of Parsonex Capital Markets, LLC as of December 31, 2021, the related statements of operations, changes in members' equity, and cash flows for the year then ended, and the related notes (collectively referred to as the financial statements). In my opinion, the financial statements present fairly, in all material respects, the financial position of Parsonex Capital Markets, LLC as of December 31, 2021, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. # **Basis for Opinion** These financial statements are the responsibility of Parsonex Capital Markets, LLC's management. My responsibility is to express an opinion on Parsonex Capital Markets, LLC's financial statements based on my audit. I am a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and am required to be independent with respect to Parsonex Capital Markets, 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. I conducted my audit in accordance with the standards of the PCAOB. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. My audit included performing procedures to assess the risks of material misstatement of the financial statements, 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 statements. My audit also included evaluating the accounting principles used and significant estimates made by management, as evaluating the overall presentation of the financial statements. I believe that my audit provides a reasonable basis for my opinion. #### **Auditor's Report on Supplemental Information** The information contained in Schedule I, II, and III ("Supplemental Information") has been subjected to audit procedures performed in conjunction with the audit of the Parsonex Capital Markets, LLC's financial statements. The Supplemental Information is the responsibility of the Parsonex Capital Markets, LLC's management. My audit procedures included determining whether the Supplemental Information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the Supplemental Information. In forming my opinion on the Supplemental Information, I evaluated whether the Supplemental Information, including its form and content is presented in conformity with 17 C.F.R. § 240.17a-5. In my opinion, Schedules I, II, and III are fairly stated, in all material respects, in relation to statements taken as a whole. I have served as Parsoenx Capital Markets, LLC's auditor since 2021. Tarzana, California February 25, 2022 **-1-** {5}------------------------------------------------ # **PARSONEX CAPITAL MARKETS, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021** | ASSETS | | | |---------------------------------------|---------------------------------|---------------| | Cash | | \$
36,694 | | Accmmts receivable | | 73,560 | | Prepaid expenses | | 458 | | | | | | Total Assets | | 110,712 | | | LIABILITIES AND MEMBERS' EQUITY | | | LIABILITIES | | | | Accounts payable | | 72,490 | | Total Liabilities | | 72,490 | | MEMBERS' EQUITY | | 38,222 | | Total liabilities and members' equity | | \$
110,712 | *The accompanying notes are an integral part of this statement.* {6}------------------------------------------------ # *NOTE I* - *SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES* #### *Organization and Business* Parsonex Capital Markets, LLC (the "Company"), is a Delaware Limited Liability Company formed on May 25, 2010. The Company is owned 49% by Apex Integrated Capital, LLC and 51 % by Parsonex Enterprises, Inc. The Company is approved to operate as a broker-dealer as a member of the Financial Industry Regulatory Authority ("FINRA") and is registered with the Securities and Exchange Commission ("SEC"). The Company provides services in selling tax shelters and limited partnership interests in primary distribution as well as private placements of securities. As a limited liability company, the members' liability is limited to their investments. #### *Accounting Policies* The Company follows Generally Accepted Accounting Principles (GAAP), as established by the Financial Accounting Standards Board (the F ASB), to ensure consistent reporting of financial condition, results of operations, and cash flows. #### *Cash* The Company maintains its bank account in a high credit quality institution. The balance at times may exceed federally insured limits. # *Revenue Recognition* Revenue from contracts with customers includes private placement 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 appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. The Company recognizes fees from private placements upon the sale of each unit in an offering as this satisfies the only performance obligation identified in accordance with this standard. #### *Estimates* Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimate and assumption affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results could vary from the estimates that were assumed in preparing the financial statements. {7}------------------------------------------------ # *NOTE I* - *SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)* #### *Income Taxes* The Company has elected to be taxed as a partnership for income tax reporting purposes. Therefore, the income or losses of the Company flow through to and are taxable to the Members. Accordingly, no income taxes are reflected in the accompanying financial statements. The Company has adopted the provisions of FASB Accounting Standards Codification 740-10, Accounting for Uncertainty in Income Taxes. Under F ASB ASC 740-10, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position includes an entity's status, including its status as a pass-through entity, and the decision not to file a return. The Company has evaluated each of its tax positions and has determined that it has no uncertain tax positions for which a provision or liability for income taxes is necessary. The Company is subject to audit by the taxing agencies for year ended December 31. 2018, 2019 & 2020. # *NOTE 2* - *NET CAPITAL REQUIREMENTS* The Company is subject to SEC Uniform Net Capital Rule 15c3-1, which requires the maintenance of a minimum net capital equal to the greater of \$5,000 or 6-2/3% of aggregate indebtedness as well as a ratio of aggregate indebtedness to net capital that shall not exceed 15 to 1, both as defined. At December 31, 2021, the Company had net capital of \$8,194, which was \$3,194 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was 8. 85 to 1.00. #### *NOTE 3* - *RELATED PARTY TRANSACTIONS* The Company earned all of its private placement revenues from its sale of units in offerings of funds pursuant to managing dealer agreements. The managing members of the funds are wholly owned by the members of the Company. Separately, the Company leases office space from a sister broker-dealer pursuant to a month-tomonth sublease agreement. Rent expense under this agreement was \$6,000 in 2021 and has been included in occupancy expense in the accompanying statement of operations. {8}------------------------------------------------ # *NOTE 3* - *RELATED PARTYTRANSACTIONS (Continued)* During 2021, the Company entered into a revenue sharing agreement with its sister broker-dealer. The Company receives referrals from its sister broker-dealer and pays a fee to the sister brokerdealer for revenue generated from referred entities. Fees expensed by the Company under this agreement were \$68,814 and have been included in other expenses in the accompanying statement of operations. The Company has a facilities and management agreement in place with one of its members whereby the Company is allocated its share of administrative and employee services based upon the relative time and effort spent by employees of the member on the Company. Pursuant to this agreement, the Company paid this member approximately \$72,494 during 2021 which has been included in compensation and benefits in the accompanying statement of income. Apart from this agreement, the Company paid approximately \$9,000 to this member for monthly back-office support provided by an employee of the member to the Company during 2021. Financial position and results of operations could differ from the amounts in the accompanying financial statements if these related party transactions did not exist. # *NOTE 4* - *SUBSEQUENT EVENTS* The management has reviewed the results of operations for the period of time from its year end December 31, 2021 through February 25, 2022 the date the financial statements were available to be issued, and have determined that no adjustments are necessary to the amounts reported in the accompanying financial statements nor have any subsequent events occurred, the nature of which would require disclosure. # *NOTE* **5 -** *CONTINGENCIES* The Company is subject to litigation in the normal course of business. The Company has no litigation in progress at December 31, 2021. # *NOTE 6* - *CONCENTRATION* Approximately 61% of the Company's private placement revenue was earned from one fund. {9}------------------------------------------------ # *NOTE 7* **-** *NET LOSS* The Company incurred a loss for 2021. The Company's Members have represented that they have the means and intention to provide 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. # *NOTE 8* - *FAIR VALUE MEASUREMENT* ASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritized the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or liability or, in the absence of a principal market, the most advantageous market for the asset of liability. Valuation techniques that are consistent with the market, income or cost approach, as specified by F ASB ASC 820 are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access. Level 2 inputs are inputs ( other than quoted prices included within Level 1) that are observable for the asset or liability, either directly or indirectly. Level 3 are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. (The unobservable inputs should be developed based on the best information available in the circumstances and may include the Company's own data.) There were no levels to measure at December 31, 2021. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.